OpenAI has urged the US government to shield artificial intelligence (AI) companies from state-level regulations in exchange for voluntarily sharing their models with federal authorities. In a 15-page policy proposal released on Thursday, the ChatGPT maker warned that increasing state-level AI regulations could hinder America’s technological progress, particularly in the face of competition from China.
OpenAI is advocating for federal relief from AI regulations imposed by individual US states. The company argues that a fragmented regulatory landscape could disadvantage American AI firms compared to their Chinese counterparts, who face fewer restrictions on data access.
The company suggested that if AI developers work with the US AI Safety Institute—a key government body focused on AI security—they should receive protections from state-based regulations, particularly those concerning frontier model security. Chris Lehane, OpenAI’s vice-president of global affairs, stated that a federal framework would be more effective than disparate state regulations, which may lack consistency and clarity.
The proposal comes as the Trump administration, which previously rescinded the Biden administration’s executive order on AI, develops an AI Action Plan expected by July. Unlike the Biden-era approach, which sought broader oversight, the current administration has signaled a preference for a lighter regulatory touch.
OpenAI stressed the need for the US to maintain its AI leadership, warning that if China’s AI firms continue to have “unfettered access to data” while American companies face increasing restrictions, the “race for AI is effectively over.”
In addition to regulatory relief, OpenAI reiterated its stance on copyright reform, emphasizing that the US fair use doctrine is essential to AI innovation. The company has faced multiple lawsuits over its use of copyrighted material to train AI models. OpenAI argues that if copyright restrictions tighten further, American AI firms could fall behind China in model development.
As part of its recommendations, OpenAI also proposed that AI companies gain access to government-held data, including healthcare information, to enhance AI capabilities. The company claims that such data access would be crucial in light of shifting copyright rules that could limit training data availability.
The debate over AI regulation in the US is intensifying as individual states consider new laws addressing concerns such as deepfakes, algorithmic bias, and data privacy. With no overarching federal AI law in place, OpenAI’s proposal seeks to align private sector innovation with national policy objectives.
Whether the Trump administration will adopt OpenAI’s recommendations remains to be seen. However, the company’s push highlights growing concerns within the AI industry about maintaining global competitiveness in an increasingly regulated environment.
