• The Governance of Tech

    • Omidyar Network CEO statement on federal preemption of AI regulations

    May 14, 2025

    A man in a blue blazer signs documents at a desk while a woman stands beside him in an office, discussing tech governance.

    In response to Section 43201(c) “Artificial Intelligence and Information Technology Modernization Initiative: Moratorium” in the House Energy and Commerce Committee Draft Budget Resolution, which passed out of committee today, Omidyar Network CEO Mike Kubzansky released the following statement: 

    We urge Congress to reject any attempts to preempt laws governing artificial intelligence that have already been passed at the state and local level and to prohibit any potential moratorium on further regulations of this important technology.

    This is not a binary debate between innovation or regulation. That is a false choice. We believe regulation and innovation can not only co-exist, but when done well, proper governance can incentivize collaboration and lead to world-class advancement. 

    Given Omidyar Network’s role as an investor in companies and funds in this space, we are especially aware of the risks to investors created by a patch-work of muddled regulations. But the solution is not to ignore these issues for a decade. Instead, we must engage in the hard work of enacting well-constructed safeguards so that America can build a competitive and innovative AI economy that also protects the public interest. In this, places like California, Kentucky, New Jersey, North Dakota, and Ohio have already made important headway. 

    As the true laboratories for innovation in governance, many states are considering policies like third-party evaluations, kids safety, whistleblower protections, and adverse-event reporting systems that can hold AI companies accountable, while encouraging breakthroughs that also serve America’s national interests. Instead of dismissing the legitimate democratic pathways through which these guardrails were established, complete with legislative and judicial input and community and stakeholder engagement, our hope is that Congress will learn from and mirror these efforts at the federal level. 

    Real progress will require genuine collaboration between industry and government at every level.”