Below is a guest post from Ahmad Shadid, founder of O.xyz.
In an age where artificial intelligence determines the dynamics of global power, Openai is making a bold move to ensure American domination in this sector. The new plan, called the “AI Action Plan,” will try to facilitate regulatory frameworks, implement export controls, and increase federal investment to preempt the expansion of China's AI.
Openai has signed a deal with the Trump administration for the new “The New”AI Action Plan“March 13th. The deal revolved around limited regulatory oversight and rapid development of American AI.
This proposal highlights the fundamental truth. Despite the rapid growth of China's state-supported AI players (led by Deepsek), too many state-level regulations could undermine American leadership in AI.
Protecting AI from censorship
Released in January 2025, Deepseek's R1 model is developed at a much lower cost, but challenged the advantages of the American high-tech Giants, but ran at the level of top American AI systems.
This proved to be a massive sale of US tech stocks as companies like Nvidia suffered heavy losses. Shortly thereafter, the US government raised red flags about national security and data privacy, and discussed policy solutions to protect America before the very technology that wrote the rules.
Openai's approach represents a pivotal point in American AI policy, combining regulatory advocacy with industry ambitions that ensure that the US remains above the game when it comes to AI. Furthermore, at the heart of Openai's plan is an export control strategy aimed at limiting the country's growing impact in China.
This prevents opposing states from misuse of AI platforms and technology. As a result, export restrictions protect the US national security.
Openai's plan also calls on the world to use federal dollars to explain that American-made AI is safer and that US-based companies should go ahead of the international AI trend.
Deepseek is not only a Chinese AI initiative and commercial competitor, but also a fundamental ally of the Chinese Communist Party (CCP). In late January, Deepseek became infamous for blocking information about the 1989 Tiananmen Square massacre, pointing out on social media as a wave of screenshots Chinese Censorship.
A $500 billion plan
The center of the Openai pitch is much more locked Federal funding For AI infrastructure. This means that the high water mark for American advancement in the field of AI not only protects what comes next from foreign threats, but also strengthens the calculation and data infrastructure needed to sustain long-term growth.
Stargate Projectfor example, a joint effort by Openai, Softbank, Oracle, and MGX, providing up to $500 billion for the development of US AI infrastructure.
This ambitious initiative aims to solidify the advantages of American AI while generating thousands of domestic jobs.
This is a major tactical shift in approach to AI policy, acknowledging that private sector investment is not sufficient to remain competitive compared to efforts sponsored by countries like China's Deep Sikh.
The Stargate project hopes to ensure the construction of sophisticated data centers and expanding semiconductor manufacturing within the US to maintain AI development within the US.
In the early stages, federal support for AI infrastructure is important. It is for both increased economic competitiveness and national security. Features equipped with AI are often used in national defense and information. for example, Shield AI's Nova An autonomous quadcopter drone that uses AI to fly through complex environments without GPS and collect life-saving information in combat environments.
Furthermore, AI is also important in cyber defense against hacking, phishing, ransomware, and other cybersecurity threats. This is because system deviations or anomalies can be identified in real time. Therefore, its role in pattern detection and irregularity detection will help the US protect critical defense infrastructure from cyberattacks and become even more important to quickly track AI defense growth.
The fight for AI training models
An important element of Openai's proposal is the call for a new copyright approach that will allow American AI models to access copyrighted material for use in training. The ability to train on a wide range of datasets is essential to keeping your AI model sophisticated.
If copyright policies are restricted, the US could be at a disadvantage against foreign competitors, particularly Chinese competitors operating within copyright enforcement.
AI tools are evaluated for risk, governance board scrutiny, and compliance verification frameworks. House AI Policy and DHS terms approved. Fedramp's “Fast Pass” could drive deployment, but antennas from FTC and regulations will keep AI's objectives on the same shelves as national security policies and consumer protection.
These protections are undoubtedly very important, but often slow down the pace of AI adoption in key government use cases.
Now, Openai is particularly hoping for partnerships between the government and industry. AI companies voluntarily contribute to model data, and instead, they are not responsible for strong state restrictions.
It's not an easy road ahead
Openai's proposal is bold and ambitious, but raises serious questions about how much regulations can help drive innovation in this burgeoning sector.
While weakening state-level regulatory oversights will allow for faster development of AI, there are important concerns that have yet to be resolved. The partnership structure of AI organizations with the federal government can create the possibility that private companies will exercise their issuance capabilities against national policies relating to AI and users themselves.
Regardless of these fears, one thing is clear. The US cannot afford to fall behind its competitors in AI development. If done correctly, this partnership could ensure that American AI maintains a dominant framework around the world rather than giving away the ground to foreign government-controlled competitors like China's Deep Sheek.
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