Policy and Regulation AI News & Updates

Trump Administration Proposes Higher Tax Credits for US Semiconductor Manufacturing

The Trump administration's spending bill proposes increasing tax credits for chipmakers building US manufacturing plants from 25% to 35%. This measure aims to boost domestic semiconductor production amid ongoing export restrictions on advanced AI chips to China, potentially benefiting companies like Intel, TSMC, and Micron Technology.

Senate Rejects Federal Ban on State AI Regulation in Overwhelming Bipartisan Vote

The U.S. Senate voted 99-1 to remove a controversial provision from the Trump administration's budget bill that would have banned states from regulating AI for 10 years. The provision, supported by major Silicon Valley executives including Sam Altman and Marc Andreessen, was opposed by both Democrats and Republicans who argued it would harm consumers and reduce oversight of AI companies.

Anthropic Launches Economic Futures Program to Study AI's Labor Market Impact

Anthropic has launched its Economic Futures Program to research AI's impacts on labor markets and the global economy, including providing grants up to $50,000 for empirical research and hosting policy symposia. The initiative comes amid predictions from Anthropic's CEO that AI could eliminate half of entry-level white-collar jobs and spike unemployment to 20% within one to five years. The program aims to develop evidence-based policy proposals to prepare for AI's economic disruption.

Pope Leo XIV Positions AI Threat to Humanity as Central Legacy Issue

Pope Leo XIV is making AI's threat to humanity a signature issue of his papacy, drawing parallels to his namesake's advocacy for workers during the Industrial Revolution. The Vatican is pushing for a binding international AI treaty, putting the Pope at odds with tech industry leaders who have been courting Vatican influence on AI policy.

Taiwan Imposes Export Controls on Chinese AI Chip Manufacturers Huawei and SMIC

Taiwan has placed Chinese companies Huawei and SMIC on a restricted entity list, requiring government approval for any Taiwanese exports to these firms. This action will limit their access to critical plant construction technologies, materials, and equipment needed for AI semiconductor development, potentially hindering China's AI chip manufacturing capabilities.

New York Passes RAISE Act Requiring Safety Standards for Frontier AI Models

New York state lawmakers passed the RAISE Act, which requires major AI companies like OpenAI, Google, and Anthropic to publish safety reports and follow transparency standards for AI models trained with over $100 million in computing resources. The bill aims to prevent AI-fueled disasters causing over 100 casualties or $1 billion in damages, with civil penalties up to $30 million for non-compliance. The legislation now awaits Governor Kathy Hochul's signature and represents the first legally mandated transparency standards for frontier AI labs in America.

NVIDIA and AMD Develop Restricted AI Chips for Chinese Market to Comply with US Export Controls

NVIDIA and AMD are developing new AI chips specifically for the Chinese market to comply with US export restrictions on advanced semiconductor technology. NVIDIA plans to sell a stripped-down "B20" GPU while AMD is targeting AI workloads with its Radeon AI PRO R9700, with both companies expected to begin sales in July. NVIDIA reported significant financial impacts from these restrictions, including a $4.5 billion Q1 charge and forecasted $8 billion revenue hit in Q2.

US Officials Probe Apple-Alibaba AI Partnership for Chinese iPhones

US government officials and congressional representatives are examining a potential deal between Apple and Alibaba that would integrate Alibaba's AI features into iPhones sold in China. The White House and House Select Committee on China have directly questioned Apple executives about data sharing and regulatory commitments, with Rep. Krishnamoorthi expressing concern about Alibaba's ties to the Chinese government. The deal has only been confirmed by Alibaba thus far, not Apple.

Trump Administration Rescinds Biden's AI Chip Export Controls

The US Department of Commerce has officially rescinded the Biden Administration's Artificial Intelligence Diffusion Rule that would have implemented tiered export controls on AI chips to various countries. The Trump Administration plans to replace it with a different approach focused on direct country negotiations rather than blanket restrictions, while maintaining vigilance against adversaries accessing US AI technology.

Trump Dismisses Copyright Office Director Following AI Training Report

President Trump fired Shira Perlmutter, the Register of Copyrights, shortly after the Copyright Office released a report on AI training with copyrighted content. Representative Morelle linked the firing to Perlmutter's reluctance to support Elon Musk's interests in using copyrighted works for AI training, while the report itself suggested limitations on fair use claims when AI companies train on copyrighted materials.