OpenAI's "Reverse Federalism" Shapes State AI Laws

OpenAI is leading a state-by-state lobbying effort to shape AI regulation. This strategy, called "reverse federalism" by OpenAI's Chris Lehane, aims to create a unified regulatory framework by passing similar laws in many states. OpenAI has already endorsed AI safety laws in California and New York. Now, it's backing a similar bill in Illinois that would require frontier AI labs to submit to audits. This bill shares similarities with the laws passed in New York and California. If the Illinois bill passes, OpenAI will have influenced foundational policy in three influential states. However, rival AI lab Anthropic is also active in Illinois, supporting a competing bill. Tech companies are spending millions on lobbying, with an estimated $40 million spent in California last year. This shows how AI giants are using their funds to dictate their own rules in the absence of federal regulation.