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OpenAI's Strategic Move: Navigating the Regulatory Landscape

ALSO: Microsoft and Xbox have unveiled "Copilot for Gaming" & AI2 has launched OLMo 2 32B, the first fully open model to surpass GPT-3.5

Good Morning,

OpenAI has just released a 15-page submission in response to the White House’s call for public input on the AI Action Plan. In it, the company advocates for shielding AI firms from state-level regulations in favor of federal oversight.

TODAY IN MORNING AI

  • AI2 has launched OLMo 2 32B, the first fully open model to surpass GPT-3.5

  • Microsoft and Xbox have unveiled "Copilot for Gaming"

  • Google has added support for YouTube in the Gemini API and Google AI Studio

  • OpenAI's Strategic Move: Navigating the Regulatory Landscape

  • AI fun fact

    and more…

Read Time: 6 Minutes 39 Seconds

AI HEADLINES
TOP AI STORIES

AI2 has launched OLMo 2 32B, the first fully open model to surpass GPT-3.5 and GPT-4o mini on academic benchmarks, while using only a third of the training compute required by similar models like Qwen 2.5 32B.

Microsoft and Xbox have unveiled "Copilot for Gaming," an AI-powered assistant designed to help players quickly enter games, offer in-game coaching, and enhance social interactions. Early access will soon be available for mobile users.

Alibaba introduced New Quark, a revamped version of its AI assistant mobile app, now powered by the new Qwen reasoning model.

Google has added support for YouTube in the Gemini API and Google AI Studio, enabling the model to leverage vision capabilities to interact with video content.

Former OpenAI researcher Andrej Karpathy predicted that AI will drive a major shift in web content design, with pages being optimized for LLMs and context windows rather than human readability.

AI DEVELOPMENT
OpenAI's Strategic Move: Navigating the Regulatory Landscape

OpenAI has just released a 15-page submission in response to the White House’s call for public input on the AI Action Plan. In it, the company advocates for shielding AI firms from state-level regulations in favor of federal oversight.

Key points include:

  • OpenAI warns that the 781 state-level AI bills introduced this year could stifle innovation and reduce U.S. competitiveness against China’s AI ambitions.

  • The proposal calls for infrastructure investments, copyright reforms, and broader access to government datasets to support AI development.

  • OpenAI highlighted China's "unrestricted access to data," arguing that the AI race could be "effectively over" unless fair use copyright laws are applied in the U.S.

  • The company also called for a ban on models like DeepSeek due to security concerns, labeling the lab as “state-controlled.”

Why it matters: OpenAI’s regulatory ambitions are now on par with its technical ones, driven by its $500B Stargate Project and growing influence in Washington. However, its call for exemptions from state laws while seeking to restrict open-source competitors comes at a delicate moment, as it faces heavy scrutiny over closed-source models and ongoing copyright disputes.

TOOLBOX
SOME USEFUL AI TOOLS

  • Gemma 3 – Google’s multimodal, multilingual AI model family with a 128k context.

  • Gemini 2.0 Flash Expansion – New native image generation that allows users to upload, create, and edit images directly through text conversations.

  • R1-Omni – Alibaba’s new open-source multimodal reasoning model capable of interpreting emotions.

  • Perplexity MCP – Integration of Perplexity’s Sonar model with Claude to enable real-time web search capabilities.

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AI DESIGNS

cartography map by Pauline Baynes, hand drawn pencil and various inks, map of portion of fantasy continent, uncial script --v 6.1

AI FUN FACT
DID YOU KNOW?

AI is being used to create the perfect pizza by analyzing taste preferences? Some pizza companies use AI to develop new flavor combinations based on customer data, predicting which ingredients people are likely to enjoy together. AI can even analyze social media trends to identify the most popular toppings at any given moment! So, the next time you order a pizza, it might just be the result of some smart algorithms behind the scenes.

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