WSJ Tech News Briefing TNB Tech Minute: Trump Signs Executive Order to Create Federal AI Standard
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Dec 12, 2025 Silicon Valley is lobbying for federal preemption to avoid conflicting state regulations and boost competitiveness against China. Political reactions to a new executive order reveal sharp divides, with criticisms from both sides of the aisle. Meanwhile, Broadcom's stock takes a hit due to concerns over sales forecasts despite strong AI revenue, which has lower margins than other sales. Lastly, OpenAI announces the launch of GPT-5.2, enhancing its capabilities in math, science, and coding, spurred by competition from leading tech rivals.
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Federal AI Standard To Preempt States
- President Trump signed an executive order to create a single federal AI standard that overrides state AI laws.
- The move aims to prevent fragmented state rules that could slow U.S. competitiveness with China.
Tech Lobby Frames Unity As Competitive Edge
- Silicon Valley lobbied for a federal standard saying divergent state rules could make the U.S. fall behind China.
- The lobbying framed uniform federal rules as necessary for national competitiveness.
Bipartisan Criticism Emerges
- The executive order drew criticism across the political spectrum for different reasons.
- Democrats said it undermines safety reforms while some conservatives called it a giveaway to tech firms.