OpenAI’s government affairs team is pursuing a strategy of encouraging Democratic-led states to pass artificial intelligence safety legislation, aiming to create de facto national standards through what policy experts call reverse federalism.
With federal AI regulation uncertain after President Trump postponed a planned executive order, OpenAI lobbyists have focused on state capitols where lawmakers are advancing bills on model transparency, risk assessment, and deployment safeguards. California, Colorado, and New York have been central targets.
Industry observers said the approach mirrors tactics used in privacy and emissions policy, where stringent state rules effectively set nationwide compliance baselines for large technology firms. OpenAI has publicly supported federal preemption in some contexts while simultaneously backing state bills that align with its safety framework.
Critics argue the strategy could fragment the regulatory landscape, while supporters say state action fills a vacuum created by Washington’s delay. The White House has opposed many state AI measures, calling them growth inhibitors.
Top lobbyist Chris Lehane has led OpenAI policy efforts as the company competes with Google, Anthropic, and Meta for enterprise and government contracts. State bills under consideration include requirements for red-teaming, incident reporting, and restrictions on certain high-risk deployments. Federal legislation on AI preemption stalled in Congress earlier this year. Companies that operate nationally often comply with the strictest state rule to avoid fragmented compliance costs.
Created by Ayen Stabel.
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Sources:
https://dailycuratednews.substack.com/p/news-headlines-may-22-2026