politics

Trump Administration Significantly Reduces Biden-Era AI Restrictions, Introduces Ambitious 'AI Action Plan'

Reducing bureaucracy for leading private companies like OpenAI amid a near $40 billion push, transforming 23 CSU campuses with $16.9 million investments, and countering DeepSeek’s global challenge — a united bid to secure America’s tech leadership and national defense.

April 2, 2025

Summary

To boost American innovation, the Trump administration has reversed Biden-era AI restrictions, reducing regulations to accelerate private sector growth.

The new order introduces an AI Action Plan, created with advice from important advisors, to ensure the United States remains a leader in AI for a strong economy and national defense.

OpenAI is pushing for a simplified regulatory framework, seeking faster federal testing and temporary exemptions from protocols like FedRAMP. This could reduce approval times by almost a year, even as the company deals with intense competition and legal battles involving figures like Elon Musk, supported by a nearly finalized $40 billion investment from SoftBank.

California State University will deploy advanced AI tools, including ChatGPT Edu, across all 23 of its campuses, in partnership with major tech firms.

Chinese firm DeepSeek’s launch of its R1 large language model has triggered intense debate around intellectual property, ethics, and national security.

In a move to boost American innovation, the Trump administration has reversed the AI restrictions implemented during Biden's term, aimed at reducing regulatory burdens and fueling private-sector expansion. The new executive order not only cancels previous policies but also unveils a proactive detailed plan for AI development and implementation, crafted with guidance from key advisors, to secure America’s leadership in a field critical for both economic strength and national defense.

Building on initiatives from 2019 that doubled research investments, established national AI hubs, and set technical standards, this directive is focused on simplifying regulations to accelerate technological advancement.

On the private front, OpenAI has been pushing for a more streamlined regulatory approach. The organization is advocating for faster federal testing and seeking temporary exemptions from rules like FedRAMP, a change that could cut nearly a year off the approval process. Despite OpenAI facing intense competition and lawsuits—including disputes involving figures such as Elon Musk—OpenAI is charging ahead with significant investment rounds, including an almost secured $40 billion commitment from SoftBank.

In education, California State University is gearing up to transform learning across its 23 campuses by deploying advanced AI tools. Unveiled by Chancellor Mildred García, the initiative involves collaboration with leading tech firms and features ChatGPT Edu, a secure version of the chatbot operating exclusively within the CSU network.

Additionally, CSU is establishing an AI Workforce Acceleration Board that will bring together top tech leaders and government officials, including appointees from Governor Newsom’s office. This board will design training programs for over 460,000 students and 63,000 staff members, reallocating one-time budget savings and investing roughly $16.9 million in long-term partnerships with OpenAI, demonstrating a firm commitment to AI education.

On a global scale, Chinese AI firm DeepSeek has stirred controversy with the launch of its R1 large language model, which employs model distillation. This development has ignited serious debates over intellectual property, ethics, and national security, with experts warning that such cost-cutting measures may compromise data integrity and threaten America’s technological dominance.

Together, these measures—from strong executive actions and proactive industry lobbying to transformative academic reforms—signal a united push to eliminate unnecessary regulations, empowering market forces to drive innovation while securing America’s competitive edge and national interests.