OpenAI Advocates for Copyright Exemptions in AI Training to Maintain U.S. Competitive Edge

OpenAI has formally requested that the U.S. government ease restrictions on AI companies using copyrighted material for training purposes, framing the issue as critical to "strengthen America's lead" in the global artificial intelligence race.

The proposal was submitted Thursday as part of the incoming Trump administration's "AI Action Plan," which seeks input from various stakeholders while aiming to eliminate "unnecessarily burdensome requirements" that could impede private sector innovation.

"Freedom-Focused" Policy Recommendations

OpenAI's submission advocates for several policy changes, including reduced compliance requirements with what it terms "overly burdensome state laws." The company placed particular emphasis on copyright issues—a contentious area that has resulted in multiple lawsuits against OpenAI from news organizations including The New York Times, the Chicago Tribune, and the Center for Investigative Reporting, as well as from authors and visual artists alleging unauthorized use of their work.

Despite these legal challenges, OpenAI maintains that expanding "fair use" policies and reducing intellectual property restrictions would simultaneously "[protect] the rights and interests of content creators while also protecting America's AI leadership and national security," though specific mechanisms for creator protection were not detailed.

The China Factor

A significant point in OpenAI's argument centers on global competition, particularly with China. Unlike U.S. companies facing copyright restrictions, Chinese AI developers can utilize virtually unlimited data without similar legal constraints. This advantage is compounded by China's massive population of 1.4 billion people, providing an enormous pool of training data that enables rapid AI advancement.

"The federal government can both secure Americans' freedom to learn from AI, and avoid forfeiting our AI lead to the PRC by preserving American AI models' ability to learn from copyrighted material," the proposal states, referencing the People's Republic of China.

Shifting Policy Landscape

The proposal comes amid significant policy changes in the AI sector. Shortly after taking office, President Trump revoked former President Biden's executive order on AI, which had emphasized that "irresponsible use [of AI] could exacerbate societal harms" including national security threats. Trump's administration has characterized previous directives as "barriers to American AI innovation."

Infrastructure Investment Push

The administration recently announced "Stargate," a massive AI infrastructure initiative in partnership with OpenAI, Oracle, and SoftBank. The project, structured as a separate company, has secured pledges of $100 billion initially, with potential investment reaching $500 billion over four years.

OpenAI's proposal emphasizes that "Sustaining America's lead on AI means building the necessary infrastructure to compete with the PRC and its commandeered resources." The company argues this investment would create jobs, boost local economies, modernize the energy grid, and prepare "an AI-ready workforce."

Reports indicate OpenAI is considering building new data center campuses across 16 states as part of this initiative.

Global AI Competition Intensifies

The proposal specifically mentions DeepSeek R1—a recently released AI model from a small Chinese lab that briefly surpassed ChatGPT in Apple's App Store rankings and triggered market volatility in tech stocks—as evidence of the narrowing competitive gap.

"While America maintains a lead on AI today, DeepSeek shows that our lead is not wide and is narrowing," OpenAI warned.

The company also advocates for exporting "democratic AI" internationally and increasing adoption of AI tools within the U.S. government, noting its January launch of ChatGPT Gov specifically designed for government applications.​​​​​​​​​​​​​​​​