Policy and Regulation AI News & Updates

States Across US Propose Data Center Moratoriums Amid Growing Public Opposition to AI Infrastructure

Public opposition to AI data center construction is intensifying across the United States, with several states and municipalities proposing or passing temporary moratoriums on new facilities. New York has introduced a three-year statewide construction ban while communities study environmental and economic impacts, joining local bans in New Orleans, Madison, and other cities. The backlash is driven by concerns over rising energy costs, environmental pollution, and strain on local resources, even as tech companies plan to spend $650 billion on data center infrastructure.

Pentagon Threatens Anthropic with Defense Production Act Over AI Military Access Restrictions

The U.S. Department of Defense has given Anthropic until Friday to grant unrestricted military access to its AI model or face designation as a "supply chain risk" or compulsory production under the Defense Production Act. Anthropic refuses to remove its guardrails preventing mass surveillance and fully autonomous weapons, creating an unprecedented standoff between a leading AI company and the military. The Pentagon currently relies solely on Anthropic for classified AI access, creating vendor lock-in that may explain its aggressive approach.

Pentagon Threatens Anthropic with "Supply Chain Risk" Designation Over Restricted Military AI Use

Defense Secretary Pete Hegseth has summoned Anthropic CEO Dario Amodei to discuss military use of Claude AI after the company refused to allow its technology for mass surveillance of Americans and autonomous weapons development. The Pentagon is threatening to designate Anthropic as a "supply chain risk," which would void their $200 million contract and force other Pentagon partners to stop using Claude entirely.

New York Proposes Three-Year Moratorium on New Data Center Construction Amid AI Infrastructure Concerns

New York state lawmakers have introduced legislation to impose a three-year moratorium on permits for new data center construction and operation, joining at least five other states considering similar pauses. The bipartisan concern stems from the environmental impact and increased electricity costs for residents as tech companies rapidly expand AI infrastructure, prompting over 230 environmental groups to call for a national moratorium.

New York Enacts RAISE Act Mandating AI Safety Reporting and Oversight

New York Governor Kathy Hochul signed the RAISE Act, making New York the second U.S. state after California to implement comprehensive AI safety legislation. The law requires large AI developers to publish safety protocols, report incidents within 72 hours, and creates a state monitoring office, with fines up to $1-3 million for non-compliance. The legislation faces potential federal challenges from the Trump Administration's executive order directing agencies to challenge state AI laws.

Nvidia Considers Expanding H200 GPU Production Following Trump Administration Approval for China Sales

Nvidia received approval from the Trump administration to sell its powerful H200 GPUs to China, with a 25% sales cut requirement, reversing previous Biden-era restrictions. Chinese companies including Alibaba and ByteDance are rushing to place large orders, prompting Nvidia to consider ramping up H200 production capacity. Chinese officials are still evaluating whether to allow imports of these chips, which are significantly more powerful than the H20 GPUs previously available in China.

Trump Administration Executive Order Seeks Federal Preemption of State AI Laws, Creating Legal Uncertainty for Startups

President Trump signed an executive order directing federal agencies to challenge state AI laws and establish a national framework, arguing that the current state-by-state patchwork creates burdens for startups. The order directs the DOJ to create a task force to challenge state laws, instructs the Commerce Department to compile a list of "onerous" state regulations, and asks federal agencies to explore preemptive standards. Legal experts warn the order will create prolonged legal battles and uncertainty rather than immediate clarity, potentially harming startups more than the current patchwork while favoring large tech companies that can absorb legal risks.

U.S. May Permit Export of Nvidia H200 AI Chips to China Despite Congressional Opposition

The U.S. Department of Commerce is reportedly planning to allow Nvidia to export H200 AI chips to China, though only models approximately 18 months old would be permitted. This decision conflicts with bipartisan Congressional efforts to block advanced AI chip exports to China for national security reasons, including the proposed SAFE Chips Act that would impose a 30-month export ban. The move represents a shift in the Trump administration's stance, which has oscillated between restricting and enabling chip exports as part of broader trade negotiations.

Trump Plans Executive Order to Override State AI Regulations Despite Bipartisan Opposition

President Trump announced plans to sign an executive order blocking states from enacting their own AI regulations, arguing that a unified national framework is necessary for the U.S. to maintain its competitive edge in AI development. The proposal faces strong bipartisan pushback from Congress and state leaders who argue it represents federal overreach and removes important local protections for citizens against AI harms. The order would create an AI Litigation Task Force to challenge state laws and consolidate regulatory authority under White House AI czar David Sacks.

Federal Attempt to Block State AI Regulation Fails Amid Bipartisan Opposition

Republican leaders' attempt to include a ban on state AI regulation in the annual defense bill has been rejected following bipartisan pushback. The proposal, supported by Silicon Valley and President Trump, would have preempted states from enacting their own AI laws, but critics argue this would eliminate oversight in the absence of federal AI regulation. House Majority Leader Steve Scalise indicated they will seek alternative legislative approaches to implement the ban.