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US Senate kills ban on state AI regulation

Jul 1, 2025, 11:09am EDT
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Sam Altman, CEO of OpenAI.
Aurelien Morissard/Pool via Reuters/File Photo

US senators on Tuesday killed a proposed ban on states’ ability to regulate artificial intelligence, in a setback for Silicon Valley.

The measure was a top priority for tech firms who argued a patchwork of local laws hinders their ability to innovate and compete with China.

The senator who had proposed the moratorium backed down during an overnight marathon session of votes on Republicans’ megabill, saying that state laws can help prevent AI deepfakes.

OpenAI CEO Sam Altman, who backed the ban, recently told The New York Times’ Hard Fork podcast that some regulation is still needed, but said he’s lost faith in lawmakers’ ability to keep up with the speed of technology.

A more “adaptive” framework is needed, he argued.

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