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Senate Removes AI Provision from Trump’s Bill: What It Means for Tech and Regulation

Senate Removes AI Provision from Trump’s Bill: What It Means for Tech and Regulation

July 2, 2025 By Peter Leave a Comment

Hey there! If you're into the tech scene, you might have heard about the recent Senate decision to ditch a controversial AI provision from Trump's "Big Beautiful Bill." Let's dive into what this means for the tech industry and state regulations.

Tech Titans and the AI Tug-of-War

Big Moves, Big Reactions

Picture this: Senators voting to scrap a section that aimed to put a lid on state-level AI regulations. This move, led by Senator Ted Cruz, sparked a frenzy of debates among Democrats and Republicans. The proposal went through various transformations, from a complete ban on state AI rules to finally allowing states to make their own calls while risking federal funding.

Back to the Drawing Board

Despite attempts to find common ground, the agreement hit a dead-end, leading Senator Marsha Blackburn to take matters into her own hands. With other Republicans echoing disapproval, the provision faced a grim fate. Cue the early morning Senate session and a near-unanimous vote to bid the AI restriction farewell.

Tech Advocates vs. Regulation Worries

Voices in the Arena

Amidst the chaos, tech bigwigs stepped up to defend the provision. They warned against stifling the AI sector, especially in a global race against China. OpenAI's CEO, Sam Altman, advocated for a unified federal approach to keep the tech pace brisk without getting tangled in state-specific red tape.

Industry Insights and Advocates

Palmer Luckey and Joe Lonsdale, notable figures in the tech and venture capital realms, threw their weight behind the provision. They stressed the importance of avoiding a fragmented regulatory landscape that could hinder innovation and progress.

Now, as the dust settles, the tech world awaits the bill's fate. Stay tuned for more updates on how this decision could impact the future of AI and state regulations. Remember, in the tech realm, change is the only constant!

—————————————————————————————————————————————
By: bmetzger@insider.com (Bryan Metzger)
Title: Senate Removes AI Provision from Trump’s Bill: What It Means for Tech and Regulation
Sourced From: www.businessinsider.com/senators-strike-ai-provision-from-big-beautiful-bill-2025-7
Published Date: Tue, 01 Jul 2025 15:16:32 +0000

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