OpenAI Calls for Relaxed AI Regulations to Fuel U.S. Innovation
OpenAI is urging the U.S. government to adopt a less restrictive approach to artificial intelligence regulation, arguing that it is crucial to maintaining America’s leadership in AI. In a detailed 15-page proposal submitted to the White House’s Office of Science and Technology Policy (OSTP), the company outlined its vision for the future, which it refers to as the “Intelligence Age.”
OpenAI believes that overregulation, particularly at the state level, could hinder progress and allow countries like China to gain a competitive edge in the field of AI. The company’s central argument revolves around what they term the “freedom to innovate.”
The “Freedom to Innovate” and Federal Partnerships
OpenAI suggests that the federal government should adopt a more hands-off approach to regulation. Instead, it proposes encouraging voluntary partnerships between the government and AI companies. The company believes that if developers collaborate with federal entities like the U.S. AI Safety Institute (US AISI), they should be protected from stricter state regulations.
“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 proposal.
With numerous AI-related bills pending in state legislatures, OpenAI emphasizes the urgent need for a unified, federally-driven strategy. The company warns that without relief from state regulations, U.S. innovators could be disadvantaged, while China might advance more quickly with fewer restrictions.
Exporting “Democratic AI” and Copyright Reform
Another key element of OpenAI’s proposal involves a strategy to “export democratic AI.” The aim is to encourage allied nations to adopt American AI systems, thereby strengthening alliances and spreading U.S.-aligned values, while tightening export controls to prevent advanced AI technologies from benefiting rivals like China.
Copyright laws are also addressed in the proposal. OpenAI is asking the government to protect the “freedom to learn,” arguing that American AI models needs continuous access to copyrighted content under fair use doctrine. The company warns that overly strict copyright rules could damage AI development in the U.S. and further benefit Chinese competitors. OpenAI also suggests that companies should be permitted to access “government-held or government-supported data” to improve training quality.
Infrastructure, Security, and Global Competition
Beyond regulatory concerns, OpenAI’s proposal includes a vision for developing the essential infrastructure needed to power the next generation of AI systems. This includes upgrading the country’s energy grid, preparing an AI-ready workforce, and investing in domestic semiconductor manufacturing. OpenAI also aims to accelerate the government’s adoption and approval of AI tools. For example, they believe the current lengthy review process for federal agencies to implement AI products could be reduced by a year with an expedited approval path.
The Race with China
A major theme throughout OpenAI’s proposal is worry over China’s swift progress in AI. The company referenced DeepSeek, a Chinese AI startup that briefly surpassed ChatGPT on the App Store, as an indicator that America’s leadership in AI is shrinking. OpenAI recognizes China’s state-driven model’s potential for speedy advancement but believes that America’s edge lies in its freedom to both innovate and learn. They caution that overregulation and outdated copyright laws may jeopardize that freedom, holding back U.S. developers.
The White House’s AI Action Plan is anticipated by July, and OpenAI’s recommendations are likely to influence its direction. The Trump administration has previously rolled back some of the Biden-era executive orders on AI, signaling a preference for a more flexible regulatory approach. With numerous AI-related bills pending across U.S. states, OpenAI’s proposals may help form a national framework for AI governance.
