This is a guest contribution from Ahmad Shadid, the Founder of O.xyz.
In a time when artificial intelligence influences global power relations, significant strides are being taken to maintain America’s leadership in this domain. The newly unveiled “AI Action Plan” aims to streamline the regulatory environment, enforce export controls, and bolster federal funding, keeping the U.S. ahead of China’s advancements in AI technology.
On March 13, OpenAI reached an agreement with the previous administration focused on the “AI Action Plan,” which emphasized limited oversight and accelerated AI development within the United States.
This initiative underscores a crucial reality: excessive state-level regulations might hinder the U.S.’s AI leadership, especially as state-backed Chinese AI entities like DeepSeek continue to expand at a rapid pace.
Protecting AI from censorship
DeepSeek’s R1 model, launched in January 2025, matched the performance of leading American AI systems while being developed at a significantly lower cost, posing a threat to the dominance of American tech firms.
This situation contributed to a notable decline in U.S. tech stocks, with companies like Nvidia experiencing considerable losses. In response, the U.S. government raised concerns regarding national security and data privacy, exploring policy options to maintain its edge in the technologies it initially helped shape.
OpenAI’s strategy represents a critical juncture in U.S. AI policy, merging regulatory advocacy with ambitious industrial goals to ensure that the U.S. remains a leader in AI. Furthermore, a key aspect of OpenAI’s approach is an export-control initiative designed to curtail the growing influence of China in this vital sector.
These export controls aim to prevent the potential misuse of AI technologies by rival nations, thereby safeguarding U.S. national security.
OpenAI’s initiative also includes plans to leverage federal funding to promote American AI as a safer alternative, ensuring that U.S.-based companies stay ahead in the global AI landscape.
DeepSeek is not only a Chinese AI initiative and a commercial challenger but also a key ally of the Chinese Communist Party (CCP). In late January, DeepSeek attracted attention for blocking information regarding the 1989 Tiananmen Square massacre, highlighting China’s censorship practices through viral social media screenshots.
The $500 billion initiative
One of the cornerstone elements of OpenAI’s proposal is securing increased federal funding for the enhancement of AI infrastructure. This is aimed not just at countering foreign threats to ensure American progress in AI but also at reinforcing the essential computational and data infrastructure necessary for sustained growth.
For example, the Stargate Project is a collaborative effort involving OpenAI, SoftBank, Oracle, and MGX, which plans to invest up to $500 billion in AI infrastructure development in the United States.
This bold initiative aims to solidify U.S. superiority in the AI sector while also creating thousands of domestic jobs, countering the narrative that AI might lead to job losses.
It’s a significant pivot in the strategy surrounding AI policy, recognizing that private sector funding alone is insufficient to compete with state-backed ventures like China’s DeepSeek.
The Stargate Project intends to facilitate the establishment of advanced data centers and expand semiconductor manufacturing within the United States, keeping AI development anchored domestically.
Early federal support for AI infrastructure is essential for enhancing economic competitiveness and ensuring national security. AI-driven tools play critical roles in national defense and intelligence operations. For instance, Shield AI’s Nova functions as an autonomous drone capable of navigating complex environments without GPS to gather vital information in combat situations.
Moreover, AI is crucial for cybersecurity, defending against threats such as hacking, phishing, and ransomware by identifying anomalies in real time. This ability to recognize patterns and irregularities is vital for safeguarding defense infrastructure from cyberattacks, emphasizing the need for accelerated AI advancements in defense applications.
The contest over AI training models
A pivotal aspect of OpenAI’s proposal is advocating for a reformed copyright framework that would allow American AI models to utilize copyrighted material for training. Access to diverse datasets is critical for maintaining the sophistication of AI models.
Restrictive copyright regulations could disadvantage the U.S. compared to international competitors, particularly those in China, where copyright enforcement is comparatively weaker.
AI technologies are assessed for risks, government oversight, and compliance checks, guided by frameworks like the House AI Policy and DHS conditional approvals. While initiatives like FedRAMP’s ‘fast pass’ may expedite deployment, oversight from the FTC and regulations will intertwine AI applications with national security and consumer protection considerations.
These safeguards, though crucial, frequently hinder the swift adoption of AI in key government contexts.
Currently, OpenAI is actively pushing for a collaborative partnership between the government and the private sector, proposing that AI firms voluntarily share their models’ data in exchange for reduced regulatory constraints.
A challenging path ahead
While OpenAI’s proposal is ambitious, it raises important questions about the role of regulation in fostering innovation in this rapidly evolving field.
A reduction in state-level regulatory oversight may facilitate faster AI advancements, yet significant concerns remain unresolved. The partnership model between AI companies and the federal government might enable private entities to exert disproportionate influence over national AI policies and its users.
Despite these apprehensions, it is evident that the United States must not lag behind its international competitors in AI development. If executed properly, this partnership has the potential to ensure that American AI remains the leading framework globally instead of conceding ground to foreign government-controlled rivals like China’s DeepSeek.
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