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The a16z Show

The State of American AI Policy: From ‘Pause AI’ to ‘Build’

The a16z Show

a16z

Science, Innovation, Business, Entrepreneurship, Culture, Disruption, Software Eating The World, Technology

4.41.1K Ratings

🗓️ 15 August 2025

⏱️ 42 minutes

🧾️ Download transcript

Summary

a16z General Partners Martin Casado and Anjney Midha join Erik Torenberg to unpack one of the most dramatic shifts in tech policy in recent memory: the move from “pause AI” to “win the AI race.” They trace the evolution of U.S. AI policy—from executive orders that chilled innovation, to the recent AI Action Plan that puts scientific progress and open source at the center. The discussion covers how technologists were caught off guard, why open source was wrongly equated to nuclear risk, and what changed the narrative—including China's rapid progress. The conversation also explores: - How and why the AI discourse got captured by doomerism - What “marginal risk” really means—and why it matters - Why open source AI is not just ideology, but business strategy - How government, academia, and industry are realigning after a fractured few years - The effect of bad legislation—and what comes next Whether you're a founder, policymaker, or just trying to make sense of AI's regulatory future, this episode breaks it all down.

Transcript

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0:00.0

So we've been through all of these tech waves and we've learned how to have this discussion in a way that for the United States interest balances these two things.

0:07.6

And if we're going to make a departure from a posture that was developed from 40 years, you better have a pretty damn good reason.

0:15.4

Today, a new frontier of scientific discovery lies before us.

0:18.2

You can't sometimes judge a book by its cover.

0:19.9

And I think this is a strong start.

0:21.9

The conversation around AI regulation in the U.S. has changed dramatically. Just a year ago,

0:27.0

the loudest voices were calling to pause or shut down open source AI. Today, the U.S. is pushing

0:32.1

to lead the global race. So what changed? And what does it mean for innovation, competition,

0:36.7

and the future of open source?

0:38.8

I'm joined by A16Z general partners Martin Casado and Anjane Midha to unpack the new AI action plan,

0:45.6

the politics behind it, and the implications for builders and policymakers alike. Let's get into it.

0:53.6

As a reminder, the content here is for informational purposes only.

0:57.0

Should not be taken as legal business, tax, or investment advice, or be used to evaluate any investment or security, and is not directed at any investors or potential investors in any A16Z fund.

1:07.0

Please note that A16Z and its affiliates may also maintain investments in the companies

1:11.3

discussed in this podcast. For more details, including a link to our investments, please

1:16.0

see A16Z.com forward slash disclosures.

1:23.7

Okay, so we're talking a week or two after the action plan has been announced. Looks like we've come a long way. Yeah. You guys have been on the front lines for years now in this discourse fighting to make this possible. Why don't we trace where we've been so that we could then understand how we got here and where we're up going? I mean, under the Biden administration, we had the executive order, which was basically the opposite of what we're seeing today.

1:45.4

I mean, it was trying to limit innovation.

1:47.5

It was doing a bunch of fear mongering.

1:50.4

But to me, what was even more striking was not regulators being regulators.

1:55.4

You'd expect that.

1:56.3

But if you remember a hunch, and this is why we got involved, is you'd have these politicians, you know, making recommendations, which is fine, you'd expect that, but nobody was saying anything.

...

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