Version 1.4

Advocating For American Dominance in AI

US SENATOR JOSH HAWLEY INTRODUCES NEW BILL

THE WHITEBOARD

• Missouri US Senator, Josh Hawley, first to file Anti-China AI Bill
• House Select Committee on CCP Calls for Controls and Prohibit AI Government Purchases based on China models
• Trump Administration Split on DeepSeek Response
• VP Vance Heading to Paris for AI Summit
• States are Pushing Forward with AI Regulations
• NAIA Co-Chairs on the Hill
• Member Focus: Steve Britt, Legal Expert on AI Law
• NAIA Member Virtual MeetUp, DC Fly-In and Zooming Past 200

DEEPSEEK REACTION ON THE HILL

Who has banned DeepSeek from being downloaded by employees so far: NASA, the Navy, the Pentagon, Congress, State of Texas, the governments of Taiwan, Italy and Australia.

Senate Bill: "Decoupling America’s Artificial Intelligence Capabilities from China Act"

Just as swift as the reaction on Wall Street, Capitol Hill also responded to the release of Chinese owned, open source AGI, DeepSeek R1. We outlined last week in NAIA Digest 1.3 (HERE) that the Hill and Feds would move to implement export controls and block the app that quickly became the number one download on the Apple iPhone for the US.

The response came from both sides of the aisle. Democrat Minority Leader Chuck Schumer stated "China's innovation with DeepSeek is jarring, but it is nothing compared to what will happen if China beats the United States on the ultimate goal of AGI.". He then called for a bipartisan effort for further investments so "United States could win" the AI race.

The Republican Senator from Missouri, Josh Hawley, introduced the first bill in reaction to DeepSeek's release (S. 321 HERE) that would:

• Prohibit the import from or export to China of artificial intelligence technology;
• Prohibit American companies and universities from conducting AI research in China or in cooperation with Chinese companies; and
• Prohibit U.S. companies from investing money in Chinese AI development.

If passed and implemented, the fines would be substantial with 20 years in prison or $1 million for an individual and $100 millillion fine for enterprises. The Senator Hawley's bill was referred to the Senate Judiciary Committee for action and at this time has no co-sponsors. Senator Hawley joined with Democrat Senator Elizabeth Warren on Monday issuing a letter to the new Secretary of Commerce (designate) Harold Lutnick (HERE) calling for tighter export controls.

NAIA will keep you updated on hearings and progress in the Senate Judiciary Committee.

House Select Committee on the Chinese Communist Party Calls for NSA to Limit Chip Exports and Block PRC AI Models

Again a bipartisan response to DeepSeek's release came from Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the CCP in a letter to the new National Security Advisor (and former Select Committee Member) Mike Waltz. The letter (HERE) requests that Waltz:

• Review and update AI chip export controls to China and third party countries (Note: the Biden Administration issued a final draft ruling related to chip export controls and taking comments HERE)

• Change Federal Acquisition Regulations (FAR) to prohibit the purchase and use by the federal government of any products based on People's Republic of China AI models

• Restrict the use of products based on China AI models that would be used in US "critical infrastructure". The US defines the 16 critical infrastructure sections HERE and would cover most industries and billions in expenditures.

The two Congressional Members stated, "It is clear we are at an inflection point in the AI market where PRC AI systems are increasingly available for use in the United States. It is imperative that we do not allow PRC AI systems to gain significant market share in the United States, while acquiring the data of U.S. users that only further enable the capabilities of the AI system.” Full statement HERE.

TRUMP ADMINISTRATION DEEPSEEK RESPONSE

Trump AI "Czar" Responds: China About 4 Months Behind and We Need the Data Center Build Out

Founder of Yammer, former COO of PayPal, VC. and now President Trump's AI and Crypto "Czar", David Sacks, was on the media circuit this past week presenting the Administration's response to the DeepSeek release. As he stated on Fox:

"I think the Chinese companies are catching up very fast. We haven’t lost our leadership here. The DeepSeek R1 model is basically comparable in capabilities to the OpenAI 01 model, which came out about four months ago. So they are kind of hot on our heels here, and I think we basically have somewhere between a three and six month lead on them. But they are catching up very, very fast."

Sacks went on to push the need for further computing power in America such as the $500 billion investment detailed by President Trump last week; the possible distillation by DeepSeek of OpenAI's models; how AI companies got complacent; and he stated:

"Like President Trump said, I think it's a wake-up call. They've [American companies] got to focus on being scrappy and and on competing. And I think you're going to see them get, I think, a lot more focus now on on the competition."

Click Here or above image to watch.

Vice President JD Vance Heads to Paris for Two-Day AI Action Summit

France will host the Artificial Intelligence (AI) Action Summit in Paris beginning next Monday. The Summit will begin with a forum (program HERE) bringing together many stakeholders from around the world including representatives of governments, businesses and civil society, researchers, artists and journalist. Vice President Vance will attend and represent the US at the Summit of Heads of State and Government that will take place on 11th February, at the Grand Palais.

This is the third international gathering to discuss safety and addressing the risks of AI. The first Summit in the UK issued the Bletchley Declaration with the Biden Administration releasing the Executive Order 14110 in October of 2023 on AI safety. That EO was rescinded by President Trump (HERE) and AI policy is now under a 180-day review by the White House. We will bring you the results of this international summit and its' impact on AI regulation in Washington.

NAIA NEWS

NATIONAL LEADERSHIP: CO-CHAIRS CALEB MAX AND AARON GOLBIN VISIT CAPITOL HILL

From NAIA's LinkedIn post by Co-Chair Aaron Golbin: "It was a pleasure to meet with over a dozen members of Congress and sit down with their talented AI & technology legislative teams on behalf of the National Artificial Intelligence Association alongside my Co-Chair Caleb Max. From Representatives & Senators including Florida Congressman Neal Dunn and Arizona Senator Mark Kelly’s offices, the House Committee on Science, Space, and Technology, to the Senate Armed Services Committee, Senate Committee on Small Business and Entrepreneurship, and Committee on Commerce, Science, and Transportation — there is a strong appetite for addressing the needs of the AI industry within government to accelerate growth and minimize risk.

We’re excited to work to build a stronger America by advocating for innovative changes to the way the government handles AI policy & regulation."

NEW MEMBER FOCUS: BRITT LAW SPECIALIZING IN AI LAW

Based in South Carolina, Steve Britt is the Managing Partner of Britt Law, is a boutique law firm dedicated to helping clients navigate the complex landscape of corporate and technology law. The firm focuses on artificial intelligence and data privacy while also serving as counsel for data breaches and cybersecurity compliance to a broad range of clients, including global enterprises, early-stage technology companies and investors. As you may know, numerous states and the EU are implementing AI regulations before Washington. Steve tracks and advises on those changes plus offers a wealth of articles, webinars and reports HERE. We are excited to have Steve as a Member and working with NAIA.

NAIA FIRST VIRTUAL MEMBER MEETUP BEING SCHEDULED AS MEMBERSHIP ZOOMS PAST 200

The NAIA Team is putting together our first Member Virtual MeetUp planned for the end of February or early March. We will bring together AI startups and enterprises; policymakers; venture capitalists and advisors to discuss and participate on the future of AI in America. We will alert everyone once details are finalized plus NAIA is working on our first DC Fly-In where you will meet with Congressional Members and Trump Administration officials. Make sure the NAIA Digest is not going to spam and below are links to the first three issues if you missed them:

• Version 1.1: 118th Congress 120+ AI Related Bills House AI Task Force Reports - How Many in the 119th Congress?

• Version 1.2: President Trump Revokes 2023 AI Executive Order

• Version 1.3: President Trump Signs Exec Order for 180 Day Review of AI Policies

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