OpenAI Reaches $500 Billion as Nvidia Tests Blackwell Chips

On December 11, 2025, President Donald Trump signed an executive order aimed at preventing states from creating their own artificial intelligence regulations. The administration argues that a patchwork of 50 different state rules would hinder AI investment, slow innovation, and compromise America's competitive edge against nations like China. This order establishes an "AI Litigation Task Force" within the Justice Department, led by Attorney General Pam Bondi, to challenge state AI laws, particularly those deemed to affect interstate commerce or conflict with a federal framework. White House AI czar David Sacks clarified that the administration intends to target "onerous" state regulations, while still protecting child safety laws. The executive order also directs Commerce Secretary Howard Lutnick to identify state laws that might force AI models to alter their "truthful outputs" and threatens to withhold federal funding, including broadband grants, from states with such regulations. This move comes after Congress failed twice to pass similar federal preemption laws. States like California, which has passed 42 AI laws, along with Colorado, Utah, and Texas, could see their regulations challenged. Critics, including California Governor Gavin Newsom and Senator Ed Markey, argue the order is federal overreach, undermines states' ability to protect citizens, and is likely to face legal challenges, with some experts predicting it will fail in court. Meanwhile, the AI industry continues to see significant developments. OpenAI, co-founded by Sam Altman and Elon Musk a decade ago, has grown into a $500 billion commercial entity, with its ChatGPT chatbot used by over 800 million people weekly. Elon Musk, who left OpenAI's board in 2017, is now a rival with his own AI startup, xAI, valued at $230 billion, leading to a legal and public relations dispute over OpenAI's original mission. OpenAI is also making a massive $300 billion deal with Oracle to build "Stargate" data centers, a project unveiled in January 2025 involving five huge facilities requiring millions of chips and immense power, though some investors express concern over OpenAI's annual losses and product appeal. In other news, Disney's deal with OpenAI is seen as a turning point in entertainment, where "pre-AI" content like Star Wars will become more valuable as Disney uses its intellectual property to fuel user-generated content. Nvidia is testing optional chip-tracking software for its Blackwell processors amid allegations of advanced AI hardware smuggling into China. China's Cambricon Technologies plans to ship 500,000 AI chips in 2026, tripling its 2025 output, despite challenges like low manufacturing yield rates and limited High Bandwidth Memory supply. Education Secretary Linda McMahon champions AI for American classrooms, while AI-powered scams are a top holiday threat, with one in five Americans losing an average of $900. The Washington Post faced a staff revolt over its error-prone AI-generated podcast feature, and University of Utah scientists developed an AI co-pilot for bionic hands to improve usability. Despite some recent market jitters, Allspring Global Investments' Margie Patel remains calm about AI stock performance.

Key Takeaways

• On December 11, 2025, President Trump signed an executive order to prevent states from regulating AI, aiming for a single national framework to boost US innovation and competitiveness.
• The order creates an "AI Litigation Task Force" within the Justice Department to challenge state AI laws and threatens to withhold federal broadband funding from non-compliant states.
• White House AI czar David Sacks stated the administration will target "onerous" state regulations but will protect child safety laws.
• OpenAI, founded in 2015, is now a $500 billion commercial entity, with its ChatGPT chatbot used by over 800 million people weekly.
• Elon Musk, an OpenAI co-founder, is now a rival with his AI startup, xAI, valued at $230 billion, engaging in a legal and public relations battle with OpenAI.
• OpenAI has a $300 billion deal with Oracle to build "Stargate" data centers, a project involving five massive facilities to provide necessary computing power.
• Nvidia is testing optional chip-tracking software for its Blackwell processors due to rumors of advanced AI hardware smuggling into China.
• China's Cambricon Technologies plans to ship 500,000 AI chips in 2026, tripling its 2025 output, despite manufacturing challenges.
• AI-generated scams are a top holiday threat, with McAfee reporting one in five Americans have fallen victim, losing an average of $900.
• Education Secretary Linda McMahon supports using AI to improve American classrooms, citing positive experiences at the AI-led Alpha School in Austin, Texas.

Trump blocks states from regulating AI with new order

On December 11, 2025, President Trump signed an executive order to stop states from making their own AI laws. He believes having 50 different state rules would hurt AI investment and America's lead in AI. The order creates an "AI Litigation Task Force" to challenge state laws and directs Commerce Secretary Howard Lutnick to find laws that make AI change its "truthful outputs." White House AI czar David Sacks supports this, saying AI regulation should be a federal matter. Critics like Brad Carson and Senator Ed Markey say the order tries to block important AI rules and will likely face court challenges.

Trump order challenges state AI laws legality questioned

On December 11, 2025, President Trump signed an executive order to stop states from regulating artificial intelligence. The order tells the Justice Department to form an "AI Litigation Task Force" to sue states over their AI laws. It also directs Commerce Secretary Howard Lutnick to consider withholding federal broadband funds from states with "unfavorable" AI rules. Trump and his advisor David Sacks argue this is needed for the US to compete with China in AI. However, many experts believe the order may not be legal and will likely face court challenges. Critics worry it will harm child safety efforts and allow AI companies to operate without proper oversight.

Trump uses executive order to fight state AI rules

On December 11, 2025, President Donald Trump issued an executive order to stop states from regulating artificial intelligence. The order creates a Justice Department task force to challenge state AI laws and allows Commerce Secretary Howard Lutnick to restrict federal broadband funds from states with strict AI rules. Trump believes a single federal standard is needed to help the AI industry grow and avoid a confusing mix of state laws. This move comes after Congress failed twice to pass similar federal preemption laws. However, some worry about the order's legality and its impact on states' ability to protect their citizens.

Trump blocks state AI rules to boost innovation

On December 11, 2025, President Trump signed an executive order to prevent states from creating their own artificial intelligence regulations. He stated that too many different state rules would slow down innovation and hurt the US in the global AI race against China. The order directs Attorney General Pam Bondi to form a task force to challenge state AI laws. It also threatens to cut federal funding, including broadband grants, for states that have such regulations. States like Colorado, California, Utah, and Texas have already passed AI laws to protect citizens and ensure transparency. However, critics from both parties and advocacy groups worry about federal overreach and the lack of oversight for powerful AI technology.

Arkansas lawmaker weighs Trump's AI regulation order

On December 11, 2025, President Trump announced an executive order to stop states from making their own AI laws. This comes after Arkansas passed several AI laws this year. State Representative Scott Richardson, who sponsored two of Arkansas's AI bills, believes his laws will not be targeted because they focus on how AI content is used, not how it is made. The draft order suggests creating a task force to challenge state laws and could even withhold federal broadband funding from states with conflicting AI rules. Richardson sees Trump's action as a reasonable step that should encourage Congress to create a national AI framework.

Trump signs order to override state AI regulations

On December 11, 2025, Donald Trump signed an executive order to stop states from creating their own AI laws. The order directs Attorney General Pam Bondi to form an "AI Litigation Task Force" to challenge state regulations, especially those that might affect interstate commerce or conflict with federal rules. It also aims to create a federal AI policy framework to replace state laws. White House AI advisor David Sacks stated that the administration will target "onerous" state regulations but will protect child safety laws. This move is expected to face legal challenges and has drawn criticism from lawmakers like Senator Alex Padilla.

Trump order aims to stop state AI regulations

On December 11, 2025, President Donald Trump signed an executive order to prevent states from regulating artificial intelligence. He argued that having 50 different state approval processes would harm AI development and US leadership against China. The order creates an "AI Litigation Task Force" within the Justice Department to challenge state laws. It also calls for a review of state laws that might force AI models to change their "truthful outputs." Critics, including state leaders and civil liberties groups, say this order gives too much power to tech companies and leaves people vulnerable to AI's potential harms.

Trump order threatens states over AI laws

On December 11, 2025, President Donald Trump signed an executive order that threatens states for creating their own AI laws. The order establishes a Justice Department task force to challenge state AI regulations and directs the Commerce Department to withhold future broadband funding from states with "onerous" legislation. Trump and his advisor David Sacks argue that a unified federal approach is needed to boost the AI industry and maintain US competitiveness, while still protecting child safety. However, state attorneys general and civil rights groups, including the ACLU, criticize the order, stating it undermines states' power to protect their residents from potential AI harms.

Trump's AI order targets California regulations

On December 11, 2025, President Donald Trump signed an executive order to limit state AI regulations, which will significantly impact California. The order directs federal agencies like the FCC, FTC, and DOJ to challenge state AI laws and suggests withholding federal grants, including broadband funding, from states that continue to regulate AI. California has passed more AI laws than any other state, covering areas like copyright, deepfakes, and safety frameworks. Governor Gavin Newsom and State Senator Tom Umberg criticize the order, arguing it removes protections and leaves residents vulnerable. Opponents believe the order is legally questionable and does not address the concerns of creatives whose work is used by AI.

Trump issues order to stop state AI rules

On December 11, 2025, President Donald Trump signed an executive order aimed at preventing states from creating their own artificial intelligence regulations. He believes that a mix of 50 different state rules would make it impossible for the US to lead in AI development. The order instructs the Attorney General to form a task force to challenge state laws and directs the Commerce Department to identify problematic regulations. It also threatens to cut federal funding, like broadband grants, for states with AI laws. White House AI advisor David Sacks clarified that the administration will target "onerous" regulations but will not oppose child safety measures.

Trump blocks state AI rules for national framework

On December 11, 2025, President Donald Trump signed an executive order to prevent states from enforcing their own artificial intelligence regulations. The order aims to establish a "single national framework" for AI, with White House AI czar David Sacks stating it will help push back on "onerous" state rules, though not those related to child safety. This move is supported by some tech leaders who believe a unified approach is vital for US innovation and competition with China. However, critics like Brad Carson argue the order will face legal challenges and removes state-level safeguards without federal replacements.

Trump blocks states from setting AI rules

On December 11, 2025, President Donald Trump signed an executive order to prevent states from enforcing their own artificial intelligence regulations. He stated that the goal is to have "one central source of approval" for AI, with White House AI advisor David Sacks adding that the administration will challenge "onerous" state rules but not those concerning child safety. Tech companies support this, arguing that state-level regulations slow innovation and hinder the US in its competition with China. However, California Governor Gavin Newsom and advocacy groups like Mothers Against Media Addiction criticize the order, saying it undermines states' ability to protect their residents.

States vow to continue AI laws despite Trump order

On December 11, 2025, President Donald Trump signed an executive order that allows the federal government to challenge state AI laws. The order creates an "AI Litigation Task Force" and warns states they could lose federal funding if their AI laws are deemed harmful, though child safety laws are exempt. Despite this, state lawmakers from both parties, including South Carolina Rep. Brandon Guffey and South Dakota Sen. Liz Larson, plan to continue passing AI legislation in 2026. They argue against federal overreach and believe states must protect their citizens, especially since Congress has not created a national AI framework. The tech industry, however, supports the order, seeing it as a step towards unified federal policy.

Trump order aims to curb state AI regulations

On December 11, 2025, President Trump signed an executive order to limit state regulations on artificial intelligence. The order creates an "AI Litigation Task Force" within the Justice Department to challenge state AI laws, especially those that might be unconstitutional or conflict with federal rules. It also directs the Commerce Secretary to identify "onerous" state laws, including those requiring AI models to change "truthful outputs," and threatens to withhold federal broadband funding from states with such laws. The White House aims to establish a single national AI policy, which could help financial institutions adopt AI tools more easily. However, the order is expected to face legal challenges from states arguing federal overreach.

Trump limits state AI regulation with new order

On December 11, 2025, President Donald Trump signed an executive order to limit states' power to regulate artificial intelligence. The order aims to create a "minimally burdensome national policy framework" to boost US leadership in AI. It instructs Attorney General Merrick Garland to develop guidelines for states and identify conflicting laws. Commerce Secretary Howard Lutnick will also identify state laws that might force AI models to change their "truthful outputs." The order threatens to use federal funding as an incentive for states to comply, and federal AI law would override state regulations, except for child safety. This move is seen as a win for tech companies but has drawn criticism from those who want more comprehensive AI oversight.

Trump's AI order faces legal challenges

On December 11, 2025, President Donald Trump signed an executive order to establish a national AI framework and override state AI regulations. The order directs the Justice Department to form an "AI Litigation Task Force" and the Commerce Department to identify "onerous" state laws, threatening states with a loss of federal funding. Trump and his advisors argue this is necessary for US competitiveness against China, while still protecting child safety laws. However, Democrats and consumer groups, including Senator Amy Klobuchar and Robert Weissman of Public Citizen, claim the order is likely illegal and will be challenged in court. They argue it rewards Big Tech and undermines states' ability to protect residents.

Trump's AI order challenges Tennessee's ELVIS Act

On December 11, 2025, President Donald Trump signed an executive order to prevent states from creating their own artificial intelligence laws. The order aims to establish a single national AI policy to ensure US leadership in the field. It directs Attorney General Pam Bondi to form an "AI Litigation Task Force" to challenge state laws that might conflict with federal policy or regulate interstate commerce. Commerce Secretary Howard Lutnick will also investigate "onerous" state AI laws and could restrict federal broadband funds. This action could impact Tennessee's ELVIS Act, which protects artists from AI misuse, though the act remains in effect for now. The order is expected to face legal challenges in court.

Trump's AI order sparks California backlash

On December 11, 2025, President Donald Trump signed an executive order to limit state AI regulations, which has drawn strong criticism from California officials. The order creates an "AI Litigation Task Force" to challenge state laws and threatens to withhold federal broadband funds from non-compliant states. California has many AI laws that could be targeted, including those on transparency and algorithmic discrimination. Governor Gavin Newsom and other state lawmakers like Senator Scott Wiener and Assemblymember Rebecca Bauer-Kahan condemn the order as federal overreach. They argue it undermines states' ability to protect residents from AI harms and is likely to face legal challenges.

White House outlines national AI policy framework

On December 11, 2025, the White House issued an Executive Order to create a national policy framework for artificial intelligence. The order directs the Justice Department to form an "AI Litigation Task Force" to challenge state AI laws within 30 days. It also requires the Commerce Department to evaluate state laws within 90 days, identifying "onerous" provisions, and could make states with such laws ineligible for federal broadband funding. The order aims to establish a single federal standard for AI, which could help financial institutions adopt AI tools more easily. However, it is expected to face legal challenges from states concerned about federal authority.

Trump bypasses Congress to block state AI laws

On December 11, 2025, President Trump issued an executive order to stop states from creating their own AI laws, after Congress had previously rejected similar efforts. The order directs Attorney General Pam Bondi to form an "AI Litigation Task Force" to challenge state AI laws, claiming some embed "ideological bias" or illegally regulate interstate commerce. It also threatens to withhold federal broadband funds from states with such laws. Trump aims for a single national AI standard to boost US dominance. However, Democratic senators like Ed Markey and Brian Schatz, along with consumer groups, criticize the order as likely illegal and dangerous, vowing to fight it.

Trump issues order to stop state AI rules

On December 11, 2025, President Donald Trump signed an executive order aimed at preventing states from creating their own artificial intelligence regulations. He believes that a mix of 50 different state rules would make it impossible for the US to lead in AI development. The order instructs the Attorney General to form a task force to challenge state laws and directs the Commerce Department to identify problematic regulations. It also threatens to cut federal funding, like broadband grants, for states with AI laws. White House AI advisor David Sacks clarified that the administration will target "onerous" regulations but will not oppose child safety measures.

Experts predict Trump's AI order will fail in court

On December 11, 2025, President Donald Trump signed an executive order aiming to block state AI laws, but experts predict it will fail in court. The order directs the Justice Department to challenge state AI regulations, citing the Interstate Commerce Clause, and requires the Federal Trade Commission to warn states against altering "truthful outputs" of AI models. However, legal experts like Olivier Sylvain argue that executive orders are not binding on the public, and federal agencies need clear authority from Congress to override state laws. Since Congress has not passed a federal AI preemption law, the order's legal standing is weak.

California officials fight Trump's AI regulation order

On December 11, 2025, President Donald Trump signed an executive order to limit states' ability to regulate artificial intelligence, sparking strong opposition from California officials. California has passed 42 AI laws in the last decade, more than any other state, covering areas like chatbots and algorithmic discrimination. Governor Gavin Newsom called the order a "con," while State Senator Josh Becker believes it will cause "massive confusion." California Attorney General Rob Bonta is considering legal action, and Assemblymember Rebecca Bauer-Kahan criticized it as a "dangerous attack" on states' constitutional authority. Critics argue the order undermines state efforts to protect residents from AI harms and is likely to face legal challenges.

Trump signs order to override state AI rules

On December 11, 2025, President Donald Trump signed an executive order to pressure states against regulating artificial intelligence. The order directs federal agencies to identify and challenge state AI laws, threatening to withhold federal funding like broadband grants. Trump argues that state regulations hinder innovation and US competitiveness against China. While the order exempts child safety and state government AI use, critics from both political parties and consumer groups worry it favors large AI companies and oversteps presidential authority. They fear it could leave consumers vulnerable to AI's potential harms, similar to past issues with social media.

OpenAI founders Altman and Musk now AI rivals

On December 11, 2015, Sam Altman and Elon Musk launched OpenAI as a nonprofit research lab. A decade later, OpenAI has become a $500 billion commercial giant, with its ChatGPT chatbot used by over 800 million people weekly. Elon Musk, who left OpenAI's board in 2017, is now a rival with his own AI startup, xAI, valued at $230 billion. The two founders are engaged in a legal and public relations battle, as Musk claims OpenAI abandoned its original mission to benefit humanity. OpenAI and xAI, along with Google and Anthropic, are making massive investments in AI infrastructure, signaling a trillion-dollar market.

Oracle's 300 billion dollar AI bet raises concerns

On December 12, 2025, Oracle's massive $300 billion deal to build data centers for OpenAI's AI tools, named "Stargate," is raising concerns among investors. Unveiled in January 2025 by Donald Trump, Larry Ellison, Sam Altman, and Masayoshi Son, this project involves building five huge data centers in places like West Texas, requiring millions of chips and immense power. OpenAI needs this computing power for its AI tools like ChatGPT. However, critics worry about the scale of Oracle's investment, especially since OpenAI is losing billions annually and its products have limited commercial appeal. This huge bet is seen by some as a sign of a potential AI market bubble.

AI fakes lead holiday scams this season

This holiday season, artificial intelligence is making scams harder to spot, becoming a top threat to shoppers. Criminals use AI to create very convincing fake retailer websites, social media video ads, and celebrity endorsements. According to McAfee expert Amy Bunn, one in five Americans have fallen for a holiday scam, losing about $900. To stay safe, always verify website addresses, be suspicious of deals that seem too good to be true, and avoid merchants who only accept money app payments. Also, watch out for phishing emails, texts, and charity scams, and check gift cards for any signs of tampering.

Washington Post AI podcast feature sparks staff revolt

On December 11, 2025, The Washington Post debuted a new AI-generated podcast feature that quickly became a "fiasco." The tool, created with Eleven Labs, was meant to let subscribers create custom audio shows. However, staffers quickly reported numerous problems, including factual errors, fabricated quotes, and the AI making its own editorial comments. This led to a widespread revolt among employees, who filled internal Slack channels with questions and concerns about how the error-prone feature was released to the public.

Disney OpenAI deal divides entertainment history

On December 11, 2025, an analyst named Grous suggests that the Disney and OpenAI deal marks a major turning point in entertainment history. He believes audiences will soon distinguish between "pre-AI" content, made mostly by humans, and "post-AI" content, which will be seen as less valuable. Grous argues that Disney's vast collection of "pre-AI" intellectual property, like Star Wars, will become even more precious. Disney plans to use its IP as "AI fuel" for user-generated content, then develop the most popular ideas into high-budget shows and movies for Disney+. This strategy highlights the growing importance of classic content libraries in the AI-driven entertainment market.

China's Cambricon targets 500,000 AI chips in 2026

On December 12, 2025, China's Cambricon Technologies announced plans to ship 500,000 AI chips in 2026, tripling its output from 2025. This ambitious goal is part of China's effort to boost domestic hardware production amid US export controls. However, Cambricon faces significant challenges. Its chip manufacturer, SMIC, has low yield rates of about 20% for Cambricon's advanced chips. Additionally, there is intense competition for SMIC's production capacity and a limited supply of High Bandwidth Memory (HBM), which is crucial for AI accelerators and mostly controlled by South Korean suppliers.

Scientists create AI co-pilot for bionic hands

Scientists at the University of Utah, including Jake George and Marshall Trout, have developed an AI co-pilot to make prosthetic bionic hands easier to use. Many people abandon advanced bionic hands because they are difficult to control, lacking the natural reflexes of human hands. The new AI system uses special sensors in the fingertips to detect objects and measure grip force. An AI controller then processes this information to recognize objects, choose appropriate grip types, and move individual fingers naturally. This allows for shared control, where the user gives high-level commands and the AI handles the fine motor adjustments, making the bionic hand much more intuitive.

Allspring's Patel calm about AI stock market jitters

On December 12, 2025, Margie Patel, a senior portfolio manager at Allspring Global Investments, stated she is not concerned about the current state of AI stocks. Despite recent worries about returns on AI investments, including Broadcom's earnings and Oracle delaying some AI data center projects, Patel views these as "end of year jitters." She shared her perspective on "Bloomberg Tech."

Education Secretary McMahon bets on AI for schools

On December 12, 2025, Education Secretary Linda McMahon announced her strong belief in using artificial intelligence to improve American classrooms. She sees AI as a way to give states more control over education and to boost student engagement, citing positive experiences at the AI-led Alpha School in Austin, Texas. This focus on AI comes as the Education Department faces significant downsizing and layoffs under President Trump's direction. McMahon also mentioned that the department is already using AI to help screen grant applications. She believes AI is a powerful new tool that, with proper "guardrails" and parental controls, can greatly benefit students.

Nvidia tests software to track AI chips

On December 12, 2025, Nvidia began testing optional chip-tracking software for its Blackwell processors. This move comes as rumors and allegations are increasing about advanced AI hardware being smuggled into China. While Nvidia states it has not seen evidence of such illegal activity, the software aims to help monitor its chips. This effort likely seeks to address concerns about its technology potentially bypassing export controls and reaching unauthorized destinations.

Sources

• Trump signs executive order seeking to ban states from regulating AI companies
• Trump is trying to preempt state AI laws via an executive order. It may not be legal
• Trump orders government to fight state AI laws
• Trump signs executive order to block "excessive" state AI regulations
• Arkansas lawmaker responds to Trump's proposed executive order to preempt state AI laws
• Donald Trump Signs Executive Order To Sideline State AI Laws
• Trump signs executive order blocking states from regulating AI
• Trump Signs Executive Order That Threatens to Punish States for Passing AI Laws
• Trump’s new order against AI regulation hits California especially hard
• Trump signs executive order to block state AI regulations
• Trump signs executive order blocking states from enforcing their own regulations around AI
• Trump signs order blocking states from enforcing own AI rules
• States will keep pushing AI laws despite Trump’s efforts to stop them
• President Signs Executive Order to Limit State Regulation of Artificial Intelligence
• Trump signs executive order limiting states ability to regulate AI
• Trump’s AI order may be ‘illegal,’ Democrats and consumer advocacy groups claim
• Trump signs AI order to block state AI laws. What will happen to Tennessee's ELVIS Act?
• What does President Trump’s new executive order on AI mean for California?
• White House Issues Executive Order Outlining a National Policy Framework for AI
• Trump tries to block state AI laws himself after Congress decided not to
• Trump signs executive order to block state AI regulations
• Why Trump’s AI EO Will be DOA in Court
• Trump’s AI Order Provokes Pushback from California Officials and Consumer Advocates
• WATCH: Trump signs executive order to override AI regulations by states
• Altman and Musk launched OpenAI as a nonprofit 10 years ago. Now they’re rivals in a trillion-dollar market
• Oracle’s $300 Billion AI Bet Has Fast Become a Bubble Barometer
• AI fakes among top holiday scams targeting shoppers this season
• The Post’s A.I. ‘Disaster’
• 'We're not just going to want to be fed AI slop for 16 hours a day': Analyst sees Disney/OpenAI deal as a dividing line in entertainment history
• Cambricon targets 500,000 AI chips in 2026 as China accelerates domestic hardware push — low yields and limited HBM supply could threaten chip ambitions
• Scientists built an AI co-pilot for prosthetic bionic hands
• 'It's End of Year Jitters': Allspring's Patel Not Worried About AI Stocks
• Exclusive: Linda McMahon bets on AI as agency shrinks
• Nvidia tests chip-tracking software amid rising allegations of smuggled AI hardware to China