OpenAI Pursues Reverse Federalism: State-by-State AI Governance Strategy
View original source →OpenAI's chief global affairs officer Chris Lehane publicly outlined a 'reverse federalism' strategy on May 20, describing OpenAI's active effort to align AI safety legislation across California, New York, and Illinois.
The approach seeks to create a de facto national regulatory baseline from consistent state-level laws rather than waiting for federal AI regulation.
Key points:
• OpenAI has endorsed AI safety laws in California and New York, and is actively supporting an Illinois AI safety bill requiring frontier labs to submit to third-party audits
• Anthropic is also engaged in Illinois, backing a competing bill — creating a dynamic where the two leading AI labs are simultaneously supporting AI regulation but shaping it differently
• OpenAI frames the strategy as state leadership building momentum for federal action: states establish a common baseline, creating pressure for Congress to harmonize nationally
OpenAI's strategy is a significant shift from the standard tech industry playbook of opposing AI regulation. It reflects a calculated bet that being seen as a governance leader is commercially and politically more valuable than regulatory minimalism.
The risk is a fragmented outcome: if the three state laws pass with different requirements, OpenAI will have shaped a patchwork rather than a baseline.
Why It Matters: AI governance professionals should track the Illinois AI safety bill closely. It is the third leg of what may become the de facto US national AI governance framework, and its audit requirements could set enterprise AI procurement standards.