Tech
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.”

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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Trump AI executive order is a “major win” for Open AI, Google, Microsoft, and Meta, says Ives

President Trump’s new executive order aiming to keep states from enacting AI laws that inhibit US “global AI dominance” is a “major win” for OpenAI, Google, Microsoft, and Meta, according to Wedbush Securities analyst Dan Ives. Big Tech companies have collectively plowed hundreds of billions into the technology, while seeing massive stock price gains, and Ives believes they stand to gain much more.

“Given that there have been over 1,000 AI laws proposed at the state level, this was a necessary move by the Trump Administration to keep the US out in front for the AI Revolution over China,” Ives wrote, adding that state-by-state regulation “would have crushed US AI startup culture.” The presidential order would withhold federal funds from states that put in place onerous AI regulations.

This morning, Whitehouse AI adviser Sriram Krishnan said in a CNBC interview that he’d be working with Congress on a single national framework for AI.

Despite Ives’ rosy read-through on the order, with the exception of Nvidia, which jumped on a report of boosted Chinese demand, many AI stocks are in the red early today. The VanEck Semiconductor ETF is down nearly 1% premarket, as the AI trade struggles thanks to underwhelming earnings results from Oracle earlier this week.

“Given that there have been over 1,000 AI laws proposed at the state level, this was a necessary move by the Trump Administration to keep the US out in front for the AI Revolution over China,” Ives wrote, adding that state-by-state regulation “would have crushed US AI startup culture.” The presidential order would withhold federal funds from states that put in place onerous AI regulations.

This morning, Whitehouse AI adviser Sriram Krishnan said in a CNBC interview that he’d be working with Congress on a single national framework for AI.

Despite Ives’ rosy read-through on the order, with the exception of Nvidia, which jumped on a report of boosted Chinese demand, many AI stocks are in the red early today. The VanEck Semiconductor ETF is down nearly 1% premarket, as the AI trade struggles thanks to underwhelming earnings results from Oracle earlier this week.

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Rani Molla

Epic scores two victories as “Fortnite” returns to Google Play and appeals court keeps injunction against Apple

“Fortnite” maker Epic Games notched two wins Thursday in its drawn-out battle against Big Tech’s app stores. “Fortnite” returned to the Google Play app store in the US, Reuters reports, as Epic continues working with Google to secure court approval for their settlement.

Meanwhile, a US appeals court partly reversed sanctions against Apple in Epic’s antitrust case, calling parts of the order overly broad, but upheld the contempt finding and left a sweeping injunction in place — keeping pressure on Apple to allow developers to steer users to outside payment options and reduce its tight control over how apps can communicate and monetize on iOS.

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Jon Keegan

Report: AI-powered toys tell kids where to find matches, parrot Chinese government propaganda

You may want to think twice before buying your kids a fancy AI-powered plush toy.

A new report from NBC News found that several AI-powered kids toys could easily be steered to dangerous as well as sexually explicit conversations in a shocking demonstration of the loose safety guardrails in this novel category of consumer electronics.

A report out by the Public Interest Research Group details what researchers found when they tested five AI-powered toys for kids bought from Amazon. Some of the toys offered instructions on where to find matches and how to start fires.

NBC News also bought some of these toys and found they parroted Chinese government propaganda and gave instructions for how to sharpen knives. Some of the toys also discussed inappropriate topics for kids, like sexual kinks.

The category of AI-powered kids toys is under scrutiny as major AI companies like OpenAI have announced partnerships with toy manufacturers like Mattel (which has yet to release an AI-powered toy).

A report out by the Public Interest Research Group details what researchers found when they tested five AI-powered toys for kids bought from Amazon. Some of the toys offered instructions on where to find matches and how to start fires.

NBC News also bought some of these toys and found they parroted Chinese government propaganda and gave instructions for how to sharpen knives. Some of the toys also discussed inappropriate topics for kids, like sexual kinks.

The category of AI-powered kids toys is under scrutiny as major AI companies like OpenAI have announced partnerships with toy manufacturers like Mattel (which has yet to release an AI-powered toy).

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OpenAI releases GPT-5.2, the “best model yet for real-world, professional use”

After feeling the heat from Google’s recent launch of its powerful Gemini 3 model, OpenAI’s response to its “code red” has been released, reportedly on an accelerated schedule to keep up with the competition.

The company’s new flagship model, GPT-5.2, is out, and the company is calling it “the most capable model series yet for professional knowledge work.”

OpenAI CEO Sam Altman called it the “smartest generally-available model in the world” and shared benchmarks that showed it achieving higher scores than Gemini 3 Pro and Anthopic’s Claude Opus 4.5 in some software engineering tests and abstract reasoning, math, and science problems.

In a press release announcing the new model, the company said: “Overall, GPT‑5.2 brings significant improvements in general intelligence, long-context understanding, agentic tool-calling, and vision — making it better at executing complex, real-world tasks end-to-end than any previous model.”

OpenAI CEO Sam Altman called it the “smartest generally-available model in the world” and shared benchmarks that showed it achieving higher scores than Gemini 3 Pro and Anthopic’s Claude Opus 4.5 in some software engineering tests and abstract reasoning, math, and science problems.

In a press release announcing the new model, the company said: “Overall, GPT‑5.2 brings significant improvements in general intelligence, long-context understanding, agentic tool-calling, and vision — making it better at executing complex, real-world tasks end-to-end than any previous model.”

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