OpenAI Asks White House for Regulatory Relief

• Fragmented State Regulations Pose Risks: OpenAI submitted a 15-page policy proposal to the White House Office of Science and Technology Policy (OSTP), warning that hundreds of pending state AI bills could create compliance chaos. Chris Lehane, OpenAI’s VP of Global Affairs, emphasized that conflicting rules might slow AI progress and undermine US leadership.
• Federal Intervention Sought: OpenAI proposes federal preemption of state AI laws for companies that voluntarily collaborate with the US AI Safety Institute. This would include liability protections and streamlined oversight.
• Public-Private Partnership Model: The company suggests voluntary federal-private sector collaboration to balance innovation and security, arguing state regulations would be less effective than unified federal standards.
• Policy Recommendations: OpenAI’s proposal includes copyright reforms (citing fair use as critical for AI development), export controls to protect democratic AI systems, and infrastructure investments to support AI-ready workforce development.
• Global Competition with China: The appeal stresses urgency, noting China’s centralized AI policies could outpace US efforts if regulatory fragmentation persists.
• Legal Context: The Trump administration rescinded Biden’s AI executive order and tasked OSTP with drafting a new AI Action Plan by July 2025. No federal AI laws currently exist, leaving states to regulate issues like deepfakes and algorithmic bias.
• Call for Regulatory Relief: OpenAI argues that a patchwork of state laws creates compliance inefficiencies and requests federal intervention to ensure a cohesive AI regulatory environment.
• OpenAI Lobbies for Lighter Regulations: OpenAI has also urged the Trump administration to prioritize AI speed over stringent regulations. The company argues that excessive oversight could slow US AI innovation while China continues aggressive development.
• Trump Administration’s AI Policy Shift: Following President Trump’s revocation of Biden’s AI executive order, OpenAI has been actively involved in shaping the new “AI Action Plan.” The company has positioned itself as a key player in discussions on AI governance and regulation.
• SoftBank Investment & Strategic Positioning: OpenAI is reportedly finalizing a $40 billion investment from SoftBank at a $260 billion valuation, underscoring its pivotal role in the AI sector. This financial backing could strengthen its lobbying efforts and expand its influence on policy decisions.

Why This Matters: OpenAI has asked the White House for regulatory relief arguing that regulatory inconsistency could deter AI investment, complicate compliance, and slow critical advancements. Federal alignment may strengthen US global competitiveness but raises debates about oversight and corporate influence. OpenAI’s involvement in shaping federal policy highlights the growing influence of private AI firms in governance decisions.