OpenAI has appealed to the US government for relief from restrictive state regulations, advocating for federal protection to support AI innovation.
In its submission to the White House Office of Science and Technology Policy (OSTP), OpenAI highlighted the risk of fragmented state laws hindering progress and giving China a competitive edge.
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The appeal is part of OpenAI’s response to a request for public input by the OSTP in February, as the Trump administration prepares a new AI policy.
President Donald Trump had previously rescinded the Biden administration’s executive order on AI, directing the science office to develop an AI Action Plan by July 2025, reported Bloomberg.
The absence of federal AI legislation has led to states considering new measures on issues such as deepfakes and AI bias.
OpenAI’s proposal includes a public-private partnership model to enable AI developers to collaborate with federal agencies, avoiding burdensome state regulations.
The company warns that excessive legal constraints could stifle AI progress in the US, benefiting competitors such as China.
In a statement, OpenAI said: “We propose a holistic approach that enables voluntary partnership between the federal government and the private sector, and neutralizes potential PRC benefit from American AI companies having to comply with overly burdensome state laws.”
OpenAI also outlined policy recommendations to bolster US AI leadership.
These include an export control strategy to expand democratic AI systems globally while restricting China’s access, and balanced copyright policies to protect AI’s learning capabilities without infringing on content creators’ rights.
The ChatGPT maker stressed the need for infrastructure investment, urging the federal government to prioritise AI-ready infrastructure, energy modernisation, and workforce development.
The company also recommended that the US government lead by example in AI adoption, modernising public administration, security, and defence to match China’s AI integration.
In a separate development, Nikkei reported that SoftBank plans to use a former Sharp LCD panel plant in Japan as a data centre for AI agents developed with OpenAI.
The Japanese telecoms company is expected to acquire the facility in Sakai, Osaka, for around Y100bn ($676m).
OpenAI and SoftBank are also collaborating on Stargate, a $500bn AI initiative to develop advanced infrastructure.
