Brussels is poised to soften key elements of the EU Artificial Intelligence Act after intensive lobbying by Big Tech and pressure from the U.S., with the European Commission considering pausing or delaying enforcement—particularly for foundation models. A Digital Omnibus simplification package due 19 November 2025 may introduce one-year grace periods, exemptions for limited-use systems, and push some penalties and registration or transparency obligations toward August 2027. The move responds to industry and member-state concerns that early, strict rules could hamper competitiveness and trigger trade tensions, forcing the EU to balance its leadership on AI safety against innovation and geopolitical risk. Outcomes will hinge on the Omnibus text and reactions from EU legislators.