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OpenAI CEO Sam Altman
(Sebastian Gollnow/Getty Images)

OpenAI: America needs to be more like China to beat China at AI

In a letter to the White House, the AI company is calling for protecting Americans’ “freedom of intelligence.”

3/13/25 1:29PM

In January, President Trump signed Executive Order 14179, titled “Removing Barriers to American Leadership in Artificial Intelligence.” The order echoed President Biden’s executive order to prioritize American global dominance of AI.

Of course, there were some significant differences. Trump’s approach favored removing the few restrictions that the industry faces today and undid parts of Biden’s order. One of the main things that Trump’s order did was call for the creation of an “Artificial Intelligence Action Plan.” Today, OpenAI published its recommendations for this plan in a 15-page letter.

The TLDR: if you want us to beat China, we have to become more like them.

In the letter, OpenAI’s VP of global affairs, Chris Lehane, lists several unique “advantages” that China has that could put America at a disadvantage.

  • China is an authoritarian state, which gives it the unfair ability to “quickly marshal resources‬‭ — data, energy,‬ technical talent, and the enormous sums needed to build out its own domestic chip‬ development capacity.”

  • China’s models aren’t restricted by strict enforcement of IP laws and can train on whatever content they please.

  • China can spread the use of its homegrown AI tools like DeepSeek to its global partners.

  • China doesn’t have to comply with pesky US state laws and can engage in “regulatory arbitrage” due to the patchwork of regulations that have emerged due to a lack of federal legislation governing AI development.

It’s worth noting that the majority of the technology driving today’s AI explosion was all created in the US, without those Chinese “advantages.”

Also, this whole time there have barely been any restrictions on the development of AI in the US, with the exception of the requirements that came late in Biden’s term from his executive order, which required the largest, most powerful models to be submitted to safety reviews by regulators before release.

Despite US lawmakers on both sides of the aisle repeatedly saying AI regulation was a priority, the deeply divided Congress simply couldn’t get any bills passed on the issue. That’s why the states stepped up to fill the vacuum.

We want regulations... but voluntary ones

OpenAI says it wants the “freedom to innovate.” Lehane writes in the letter:

“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’s leaders have really talked up the capabilities and prosperity that their tools will unlock, as well as the strategic advantage they can provide for national security applications. But the company also wants to sell its AI products around the world.

Lehane calls for an export control strategy that applies a “commercial growth lens” to promote the adoption of “American AI.”

“Freedom of intelligence”

The letter wants to ensure people’s “freedom of intelligence,” which calls for widespread access to cheap, powerful AI.

But it also includes a cautionary note for the Trump administration.

The company calls for people to be “protected from both autocratic‬‭ powers that would take people’s freedoms away, and layers of laws and bureaucracy that‬‭ would prevent our realizing them.‬‭”

Just last week, Axios reported that Secretary of State Marco Rubio was spearheading a plan to use AI to track down and target foreign nationals for the revocation of US visas based on their speech and actions.

OpenAI did not immediately respond to a request for comment.

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OpenAI and Microsoft reach agreement that moves OpenAI closer to for-profit status

In a joint statement, OpenAI and Microsoft announced a “non-binding memorandum of understanding” for their renegotiated $13 billion partnership, which was a source of recent tension between the two companies.

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling non-profit arm would hold an equity stake in the PBC valued at $100 billion, which would “making it one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling non-profit arm would hold an equity stake in the PBC valued at $100 billion, which would “making it one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

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BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, its not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we dont expect impact on Uber/Lyft financial performance in 25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

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Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

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