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Big Tech Giants Unite to Block State-Level AI Regulations: Push for 10-Year Federal Moratorium

Proponents argue that fragmented state regulations could erode the U.S. edge in AI development.

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Written by: CDO Magazine

Updated 5:01 PM UTC, July 7, 2025

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Amazon, Google, Microsoft, and Meta have jointly launched a major lobbying effort to forestall AI regulations at the state level by advocating for a 10-year federal moratorium, the Financial Times reported.

In a strategic move included in the U.S. House’s recent budget resolution, the tech coalition seeks to prevent individual states from imposing disparate rules that could fragment the national AI landscape.

Proponents argue that fragmented state regulations could erode the U.S. edge in AI development, particularly against international competitors like China. 

The report suggests that Chip Pickering, former congressman and CEO of INCOMPAS, has been actively lobbying for the proposal on behalf of the association’s members. These include major tech firms such as Microsoft, Amazon, Meta, and Google, as well as a range of smaller companies in the data, energy, infrastructure, and legal sectors.

“This is the right policy at the right time for American leadership. But it’s equally important in the race against China,” Pickering told the Financial Times.

Despite its industry support, the proposal has stirred controversy. Critics, including AI safety advocates and some Republican lawmakers, warn that a decade-long freeze would entrench Big Tech’s dominance and sideline necessary safeguards.

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