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    Home Latest News

      OpenAI Urges White House to Loosen AI Rules, Warns of China’s Rapid Advances

      Written by

      Aminu Abdullahi
      Published March 17, 2025
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        White House speaker podium with the US flag and logo on the background.
        Image: Maksym Yemelyanov/Adobe Stock

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        OpenAI is urging the U.S. government to ease regulations on artificial intelligence development to keep America at the forefront of AI innovation. In a 15-page proposal submitted to the White House’s Office of Science and Technology Policy (OSTP), OpenAI outlined its vision for what it calls the “Intelligence Age.”

        The company says the U.S. is on the edge of a new era of prosperity powered by artificial intelligence but warns that overregulation, especially at the state level, could slow progress and risk ceding ground to countries like China.

        Relief from state regulations

        At the heart of the plan is what OpenAI calls the “freedom to innovate.” The company wants the federal government to take a light-touch approach to regulation and instead form voluntary partnerships with AI companies. If developers agree to work with federal groups like the U.S. AI Safety Institute (US AISI), OpenAI says they should be protected from more stringent state rules.

        “For innovation to truly create new freedoms, America’s builders, developers, and entrepreneurs — our nation’s greatest competitive advantage — must first have the freedom to innovate in the national interest.” OpenAI stated in its submission.

        With hundreds of AI-related bills pending in state legislatures across the country, OpenAI believes a more unified, federally-driven approach is urgently needed. The company warned that without such relief, America’s innovators could be hindered while China moves faster with fewer restrictions.

        Exporting “democratic AI”

        Another key piece of OpenAI’s pitch is what it calls a strategy to “export democratic AI.” The idea is to encourage allied nations to adopt American AI systems — strengthening alliances and spreading U.S.-aligned values — while tightening export controls to prevent advanced AI technologies from reaching rivals like China.

        OpenAI said this strategy would be both a commercial and diplomatic win, helping to grow the reach of American AI while protecting its competitive edge.

        Copyright reform and the freedom to learn

        One of the more controversial proposals involves copyright laws. OpenAI is asking the government to protect the “freedom to learn,” arguing that American AI models must continue to access copyrighted content under fair use doctrine.

        The company says if copyright rules are tightened too much, it could cripple AI development in the U.S. and leave Chinese competitors with a major advantage. It also suggested that companies should be allowed access to “government-held or government-supported data” to improve training quality.

        Infrastructure, security, and global competition

        Beyond regulation, OpenAI’s proposal details a vision for building the critical infrastructure needed to power the next generation of AI systems. That includes modernizing the country’s energy grid, training an AI-ready workforce, and investing in domestic semiconductor manufacturing.

        OpenAI also wants to accelerate how the government adopts and approves AI tools. Currently, federal agencies go through lengthy reviews to implement AI products. OpenAI says this process could be trimmed by a full year with a new, faster path to approval.

        A race against China

        A major theme throughout OpenAI’s proposal is concern over China’s rapid progress in AI. The company pointed to DeepSeek — a Chinese AI startup that briefly outperformed ChatGPT on the App Store earlier this year — as a sign that America’s lead in the space is shrinking.

        While China’s state-driven model may allow it to move fast, OpenAI says America’s strength lies in its freedom — both to innovate and to learn. But that freedom, it warns, could be lost if overregulation and outdated copyright laws hold back U.S. developers.

        The White House’s AI Action Plan is expected by July, and OpenAI’s recommendations will likely influence its direction. The Trump administration has already rolled back some of the Biden-era executive orders on AI and has signaled a preference for a more flexible regulatory approach. With hundreds of AI-related bills pending across U.S. states, OpenAI’s proposals may help shape a national framework for AI governance.

        Aminu Abdullahi
        Aminu Abdullahi
        Aminu Abdullahi is an experienced B2B technology and finance writer and award-winning public speaker. He is the co-author of the e-book, The Ultimate Creativity Playbook, and has written for various publications, including TechRepublic, eWEEK, Enterprise Networking Planet, eSecurity Planet, CIO Insight, Enterprise Storage Forum, IT Business Edge, Webopedia, Software Pundit, Geekflare and more.

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