As the global race for artificial intelligence (AI) dominance intensifies, OpenAI on Thursday warned the US government that American companies will be left far behind if they are restricted citing copyright violations while Chinese developers enjoy unlimited access to copyrighted data. This discrepancy could give China an edge in the AI race, warns OpenAI.
“If the PRC’s developers have unfettered access to copyrighted data while U.S. companies do not, the race for AI is effectively over... We risk ceding ground in a critical technology while gaining little in the way of protections for the original IP creators,” OpenAI stated in a recent statement to the US Trade Representative (USTR). The company argued that the United States’ current approach to data protection limits access to copyrighted content, whereas China allegedly continues to use such data freely for AI training. OpenAI believes this creates an unfair competitive advantage for Chinese AI firms.
Providing "freedom-focused" recommendations on US President Donald Trump's AI Action Plan during a public comment period ending Saturday, OpenAI that the US should end these court fights by shifting its copyright strategy to promote the AI industry's "freedom to learn." Otherwise, the People's Republic of China (PRC) will likely continue accessing copyrighted data that US companies cannot access, supposedly giving China a leg up "while gaining little in the way of protections for the original IP creators," OpenAI argued.
"America loses, as does the success of democratic AI. Ultimately, access to more data from the widest possible range of sources will ensure more access to more powerful innovations that deliver even more knowledge," it added.
The company emphasised the importance of promoting "democratic AI" by adopting AI tools domestically and exporting American technology abroad.
The OpenAI remarks come in the backdrop of DeepSeek R1, a Chinese AI model that recently overtook ChatGPT in the Apple App Store, highlighting threats to U.S. leadership in AI. "While America maintains a lead on AI today, DeepSeek shows that our lead is not wide and is narrowing," OpenAI stated.
In a recent proposal to the Trump administration, OpenAI has requested more accessible AI training on copyrighted material to "strengthen America’s lead" globally.
The Sam Altman-led company also advocated for "freedom-focused" policies to encourage innovation and reduce compliance with "overly burdensome state laws."
The company stresses that "freedom to learn" from copyrighted works is essential in the AI race. The company has been involved in numerous lawsuits from news outlets and artists over AI training on copyrighted works without consent. OpenAI is facing a copyright infringement lawsuit by Indian media firms and music platforms in a Delhi court as well.
Despite these challenges, OpenAI believes its approach of "fair use" policies could "[protect] the rights and interests of content creators while also protecting America’s AI leadership and national security."
OpenAI is pushing for the Trump administration's AI Action Plan to declare AI training as "fair use," allowing unrestricted access to training data. The company argues that AI models transform copyrighted works without replacing them, aligning with fair use principles.