Why can't Tusk use his usual strategy with AI companies?

Tusk says it is not inspiring to tell people they must fight for access to Claude, ChatGPT, or Grok. He argues that AI lacks the kind of consumer demand that made his strategy work for Uber and FanDuel.

What is the difference between how Anthropic and OpenAI are positioning themselves?

Anthropic has positioned itself as the 'Luke Skywalker to OpenAI's Darth Vader,' repeatedly warning the public about AI risks. OpenAI has been more sanguine and has positioned itself close to the Trump administration.

Where will the biggest regulatory fights over AI happen?

Tusk says most fights for LLMs, data-center operators, application makers, and power providers will come at the state and local level, particularly in Texas, Tennessee, Minnesota, and Indiana.

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Political fixer: AI faces tougher regulation than any industry

Semafor Tech17h ago5 min read

Key takeaway

Bradley Tusk, a political strategist known for helping startups navigate regulation, told Compound Interest that AI companies face an unusually difficult regulatory environment compared to other industries he has worked in. Unlike Uber or FanDuel, AI lacks the consumer-demand lever Tusk traditionally uses to fight regulation, and public fears about AI risks make his playbook less effective. The real regulatory fights will happen at the state and local level, particularly in Texas, Tennessee, Minnesota, and Indiana, rather than in Washington.

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3 Key Points

What happened
Bradley Tusk, a veteran political strategist who has helped companies like Uber and FanDuel navigate regulation, told Compound Interest that AI companies are entering what may be the most permissive regulatory window they will ever see. He warned that the real battles will play out in state legislatures in Texas, Tennessee, Minnesota, and Indiana—not in Washington.
Why it matters
Tusk argues AI is unlike any industry he has worked in because it lacks popular consumer demand he can mobilize to fight regulation, and because the doomsday warnings around AI make his traditional playbook ineffective. Companies like Anthropic and OpenAI are positioning themselves differently on risk: Anthropic has publicly warned about AI dangers, while OpenAI has positioned itself closer to the Trump administration. These choices may shape how regulators respond.
What to watch
Most regulatory action on LLMs, data centers, applications, and power infrastructure will come from state and local levels rather than federal executive orders. This means AI companies should pay closer attention to restrictions moving through state legislatures than to White House positioning.

FAQ

Why can't Tusk use his usual strategy with AI companies?: Tusk says it is not inspiring to tell people they must fight for access to Claude, ChatGPT, or Grok. He argues that AI lacks the kind of consumer demand that made his strategy work for Uber and FanDuel.
What is the difference between how Anthropic and OpenAI are positioning themselves?: Anthropic has positioned itself as the 'Luke Skywalker to OpenAI's Darth Vader,' repeatedly warning the public about AI risks. OpenAI has been more sanguine and has positioned itself close to the Trump administration.
Where will the biggest regulatory fights over AI happen?: Tusk says most fights for LLMs, data-center operators, application makers, and power providers will come at the state and local level, particularly in Texas, Tennessee, Minnesota, and Indiana.

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