Openai appealed to the US government for relief from restrictive state regulations advocating for federal protection to help innovate AI.
In its submission to the White House Science and Technology Policy (OSTP), Openai highlighted the risk that fragmented state laws will hinder progress and make China competitive.
The appeal is part of Openai’s response to OSTP’s request for public information in February, as the Trump administration prepares a new AI policy.
President Donald Trump previously retracted the Biden administration’s executive order on AI and had directed the science office to develop an AI action plan by July 2025, Bloomberg reported.
The lack of federal AI laws has led to states considering new measures on issues such as deepfakes and AI bias.
Openai’s proposal includes a public-private partnership model that allows AI developers to work with federal agencies, avoiding burdensome state regulations.
The company warns that excessive legal constraints could curb US AI advances and benefit competitors such as China.
In a statement, Openai said: “We propose a holistic approach that allows for voluntary partnerships between the federal government and the private sector, neutralizing the potential PRC benefits that American AI companies must comply with overly burdensome state laws.”
Openai also outlined policy recommendations to strengthen US AI leadership.
These include export control strategies to globally expand democratic AI systems while restricting access in China, as well as a balanced copyright policy to protect AI’s learning capabilities without infringing the rights of content creators.
The ChatGpt manufacturers highlighted the need for infrastructure investment and urged the federal government to prioritize AI-Reaid infrastructure, energy modernization, and workforce development.
The company also recommended that it lead by modeling AI adoption, modern administrative, security and defense modelling in line with China’s AI integration.
In another development, Nikkei reported that SoftBank will use the previous Sharp LCD panel plant in Japan as the data center for AI agents developed with OpenAI.
The Japanese telecommunications company plans to acquire the facility in Sakai, Osaka for about 100 million years ($676 million).
Openai and SoftBank are also working with Stargate, a $500 million AI initiative to develop advanced infrastructure.
Sign up for our daily news roundup!
Give your business an edge with our major industry insights.
