Daniel Mercer
On Thursday, Donald Trump was scheduled to sign an executive order aimed at establishing a voluntary framework that would allow frontier AI companies to undergo federal government reviews for security risks prior to public release. this event was reportedly canceled because tech executives could not arrive in Washington, D.C. in time for the photo opportunity. Trump later claimed the cancellation was due to his dissatisfaction with certain aspects of the order and his desire to avoid hindering America’s competition with China in the AI domain, according to PunchBowl News’ Diego Munhoz.
This incident highlights the Trump administration’s ongoing reluctance to impose regulations on AI companies, except for those that provoke his discontent, which face immediate penalties. The administration has even attempted to impose a 10-year moratorium on any AI regulations at the state level, a move that has consistently fallen short.
In the absence of federal oversight and with state regulation still uncertain, AI companies are actively maneuvering to influence policy. A report from Politico indicates that OpenAI is leading this initiative by launching a lobbying campaign in various states to create a more favorable regulatory landscape across the nation.
According to Politico, OpenAI’s chief global affairs officer, Chris Lehane, refers to this approach as “reverse federalism.” This strategy aims to enact similar laws in multiple states, thereby establishing a semblance of unified regulatory standards across the country. The company’s lobbying efforts have so far focused on California, which passed an AI safety law that OpenAI endorsed, and New York, which also enacted a similar law.
Next on the agenda is Illinois, where OpenAI has publicly supported a proposed AI safety law mandating audits for frontier laboratories. It is noteworthy that the legislation backed by OpenAI shares many characteristics with the laws already passed in New York and California.
If this bill passes, OpenAI will have successfully influenced foundational policies in three of the most populous and politically significant blue states in the country. a significant challenge lies ahead: the rival AI lab, Anthropic, is reportedly working to shape policy in Illinois and has endorsed a competing bill.
As these leading AI companies continue to secure substantial funding at inflated valuations, an increasing share of these resources is being allocated to influence legislation. CalMatters reported that technology firms spent approximately $40 million on lobbying efforts in California last year alone, with expenditures escalating this year as millions flow into pro-AI super PACs designed to sway public opinion.
In this context, Trump’s approach of minimal governance has effectively allowed these companies to establish their own regulations.
Ethan Carter
