OpenAI is urging the Trump administration to shield AI companies from a growing wave of AI regulation, arguing that state-imposed rules could stifle innovation and weaken America’s position in the global AI race. The ChatGPT maker is pushing for federal protections that would allow AI firms to bypass state AI laws if they voluntarily share their models with the government.
In a 15-page policy proposal released on Thursday, OpenAI warned that the hundreds of AI-related bills currently pending in U.S. states could disrupt the AI industry and place the U.S. at a competitive disadvantage against China. The company is urging the administration to provide regulatory relief in exchange for voluntary cooperation with federal agencies.
OpenAI Seeks Exemptions From State AI Regulation
As part of its proposal, OpenAI suggested that the U.S. AI Safety Institute—a federal body focused on AI governance—act as the main point of contact between the government and AI companies. If firms agree to federal oversight, OpenAI believes they should be exempt from state AI regulations that focus on frontier model security and AI governance.
Chris Lehane, OpenAI’s vice president of global affairs, emphasized that AI regulation should be handled at the federal level, rather than through a patchwork of inconsistent state laws.
“If companies are working with the federal government on AI safety, they shouldn’t have to navigate conflicting state AI regulations. Federal oversight is far more effective,” Lehane said.
Under OpenAI’s proposal, AI developers would gain liability protections, reducing the risk of lawsuits while avoiding the complexity of state-level AI regulation.
Push for AI-Friendly Policies: Copyright Reform and Government Data Access
Beyond regulatory relief, OpenAI is lobbying for several policy changes, including:
- AI Infrastructure Investments: Government funding to boost AI research and maintain U.S. leadership in artificial intelligence.
- Copyright Reform: OpenAI argues that fair use protections are essential for AI training and warns that strict copyright laws could hinder AI development.
- Access to Government Data: OpenAI suggests that AI companies should be granted access to federal data sets, including health records, to improve AI models.
The company claims that without strong AI regulation at the federal level, U.S. companies could fall behind China, where fewer restrictions exist on AI data access.
“If Chinese AI developers have unrestricted access to data while U.S. firms face legal roadblocks, the race for AI leadership is effectively over,” OpenAI stated in its policy recommendations.
Critics Sound Alarm Over Corporate Influence in AI Regulation
While OpenAI frames its proposal as essential for AI innovation, critics argue that the company is attempting to sidestep regulation and consolidate power within the AI industry.
- State lawmakers and consumer advocates warn that state-imposed AI regulation is crucial to prevent bias, misinformation, and privacy violations.
- Policymakers caution that allowing AI companies to shape regulations could lead to policies that favor corporations over public safety.
- Legal experts argue that OpenAI’s plan would give major AI firms an unfair advantage, further entrenching their dominance in the industry.
“This proposal isn’t about protecting innovation—it’s about ensuring that Big Tech controls AI regulation,” said a government policy analyst.
What’s Next? The White House’s AI Action Plan
The Trump administration has yet to take a definitive stance on AI regulation, but its decision to rescind the Biden administration’s AI executive order suggests a shift toward deregulation. With the White House set to unveil its AI Action Plan by July, the coming months will determine whether the U.S. moves toward federal AI oversight or continues allowing states to create their own AI regulations.
For now, OpenAI’s call for regulatory relief has reignited the debate over AI governance, but whether Washington prioritizes innovation or stronger AI regulation remains to be seen.