As the global artificial intelligence industry rapidly advances, OpenAI is pushing for lighter regulations in the United States. The company, co-founded by Sam Altman, has submitted a proposal to the Trump administration emphasizing the need to accelerate AI innovation, reduce government-imposed restrictions, and ensure American dominance in AI technology.
This move comes after President Trump revoked the AI executive order previously signed by President Biden. The new administration is now working on an AI Action Plan, which is expected to shape U.S. AI policy in the coming years. OpenAI aims to influence this plan, advocating for reduced regulatory barriers and a more collaborative approach between government and private AI developers.
The proposal also touches on AI’s role in national security, the need for an export control strategy, and the importance of allowing AI models to learn from copyrighted material. However, critics argue that removing too many safeguards could lead to ethical concerns, privacy risks, and unchecked corporate influence over AI development.
Trump’s Approach to AI Regulation
One of President Trump’s first moves after returning to the White House in 2025 was to repeal Biden’s AI executive order titled “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.” This order emphasized strict regulations, ethical considerations, and safeguards to prevent potential risks posed by AI technologies.
Instead, Trump issued a new executive order, prioritizing America’s global dominance in AI. He directed the Office of Science and Technology Policy (OSTP) to develop a comprehensive AI Action Plan within 180 days. This plan will determine how AI is regulated, funded, and integrated into various sectors.
OpenAI’s proposal aims to shape this policy direction, ensuring that the government adopts a light regulatory approach that fosters faster AI innovation.
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OpenAI’s Key Recommendations to the Government
OpenAI has outlined several key recommendations in its proposal, including:
1. Faster AI Adoption in Government Agencies
OpenAI urges the government to modernize approval processes for AI tools, reducing bureaucratic delays and allowing federal agencies to test AI models with real data.
2. Reduced Regulation and More Freedom for AI Developers
The company calls for a “voluntary partnership” between the government and private sector, arguing that overly burdensome state laws hinder AI progress.
3. Copyright Strategy to Protect AI Learning Models
OpenAI insists that U.S. AI models should continue learning from copyrighted materials, advocating for a copyright framework that promotes innovation.
4. Export Control Strategy for AI Technology
The proposal recommends a stronger U.S. export control strategy, ensuring American AI systems are widely adopted while limiting the influence of foreign competitors.
5. AI for National Security
OpenAI suggests that the government should train AI models on classified datasets for national security tasks, including geospatial intelligence and nuclear operations.
These recommendations align with OpenAI’s broader mission to lead global AI development, ensuring U.S. leadership in the industry while minimizing regulatory hurdles.
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The Battle Between OpenAI and Elon Musk
While OpenAI is pushing for AI deregulation, its founding member and former ally Elon Musk has taken a different stance. Musk, who now leads a rival AI startup, has been critical of OpenAI’s business model and approach to AI ethics.
Musk has also emerged as one of Trump’s key advisors on AI policy, leading to speculation that his influence could impact government decisions. Meanwhile, OpenAI has been in the spotlight for securing a potential $40 billion investment from SoftBank, valuing the company at a staggering $260 billion.
The tension between Altman and Musk reflects a broader divide in the AI industry—whether to prioritize rapid innovation with minimal oversight or enforce stricter regulations for ethical AI development.
OpenAI’s National Security Push
One of the most controversial aspects of OpenAI’s proposal is its push for AI models tailored for national security. The company believes that AI can enhance U.S. defense capabilities, but critics warn that such applications could lead to militarization concerns and ethical dilemmas.
In January 2025, OpenAI launched ChatGPT Gov, a specialized version of its AI designed for U.S. government use. The company is also considering building data center campuses in 16 states, further integrating AI into government infrastructure.
However, AI experts have warned that accelerating AI adoption in government without proper safeguards could lead to security risks, misinformation issues, and reliability concerns.
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OpenAI’s Battle Against Chinese AI Companies
Another key aspect of OpenAI’s proposal is its warning about AI competition from China. The company specifically mentioned DeepSeek, a Chinese AI startup that briefly surpassed ChatGPT in popularity on Apple’s App Store.
DeepSeek reportedly developed its AI at a fraction of the cost compared to OpenAI and other U.S. companies. This raised concerns among American AI investors and policymakers, as China’s AI advancements could threaten U.S. dominance.
OpenAI argues that while America currently leads in AI development, its lead is narrowing, making government support for AI innovation crucial.
Implications for the AI Industry
The outcome of OpenAI’s proposal could have major consequences for the AI industry, including:
Faster AI development – If regulations are eased, AI companies may roll out new innovations more quickly.
Legal battles over copyright – OpenAI’s call for AI training on copyrighted material may face strong resistance from publishers and content creators.
Stronger AI export controls – The U.S. may implement tighter restrictions on foreign access to American AI models.
Government reliance on AI – AI could become a bigger part of national security, leading to both benefits and risks.
Increased competition with China – U.S. AI firms may focus on outpacing Chinese competitors, accelerating global AI advancements.
The AI industry is at a critical turning point, and the Trump administration’s decisions in the coming months will shape its trajectory for years to come.
Also Read: OpenAI Researcher Resigns, Warns of AGI Race’s Risky Future
Frequently Asked Questions (FAQs)
1. What is OpenAI’s main request to the Trump administration?
OpenAI wants fewer regulations for AI, faster approval for AI tools, and government-private sector collaboration.
2. Why did Trump revoke Biden’s AI executive order?
Trump prioritizes AI dominance over strict regulations, believing that fewer restrictions will accelerate innovation.
3. What does OpenAI say about AI and national security?
OpenAI suggests training AI models on classified data for geospatial intelligence and defense applications.
4. How does OpenAI view China’s AI advancements?
OpenAI warns that China’s AI sector is rapidly growing, posing a threat to U.S. leadership in AI technology.
5. What is ChatGPT Gov?
ChatGPT Gov is a government-specific version of OpenAI’s chatbot, designed for federal agencies.
6. What is OpenAI’s stance on copyright laws?
OpenAI believes AI should be able to learn from copyrighted material, citing the fair use doctrine.
7. What is the AI Action Plan?
It is a strategy report being developed by the U.S. government to shape AI policy under Trump.
8. Why is OpenAI building data centers in 16 states?
The company is expanding its AI infrastructure to support national AI projects.
9. How does Elon Musk fit into this?
Musk, a rival AI developer and Trump advisor, has competing views on AI regulation.
10. What could happen if AI regulations are removed?
AI could develop faster, but it may also lead to ethical issues, security risks, and monopolization.