This week brings several consequential developments across federal, state, and international technology policy. Congress is holding hearings on cybersecurity, biosecurity, and research security as agencies move forward with implementation of the CHIPS and Science Act and related national security frameworks. At the same time, the administration has taken significant actions affecting AI governance, federal tech workforce recruitment, and export controls, prompting responses from states, regulators, and U.S. allies. All of that is unpacked in this week’s newsletter.

In this week’s Nimitz Tech:

• Tech Force: The administration announced a new two-year federal hiring initiative to recruit roughly 1,000 technologists into government roles to support AI adoption and digital modernization across agencies.

• State AGs warn Big Tech: A bipartisan coalition of state attorneys general warned major tech companies that “delusional” AI chatbot outputs may violate state laws and called for independent audits and regulatory review.

• EU investigates Google’s AI training practices: The European Commission opened a competition investigation into whether Google unfairly uses publisher and YouTube content to train its Gemini AI models, potentially disadvantaging rival developers.

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, December 17th

• House Homeland Security: “Cybersecurity and The Quantum, AI, and Cloud Landscape: Examining Opportunities, Vulnerabilities, and the Future of Cybersecurity” at 10:00am. Watch here.

• House Energy and Commerce: “Examining Biosecurity at the Intersection of AI and Biology” at 10:15am. Watch here.

Thursday, December 18th

• House Investigations and Oversight: “Research Security: Examining the Implementation of the CHIPS and Science Act and NSPM-33” at 10:00am. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• President Donald Trump signed an executive order directing federal agencies to challenge and limit state-level regulation of artificial intelligence, arguing that a patchwork of state laws would hinder U.S. competitiveness with China. The order instructs the Justice Department to form a task force to contest state AI laws and directs the Commerce Department to identify regulations deemed problematic. It also threatens to restrict certain federal grant and broadband funds for states that enact AI regulations. Several states, including California, Colorado, Utah, and Texas, have already enacted AI laws focused on transparency, data use, and discrimination risks.

• The Trump administration has launched a new two-year “United States Tech Force” program aimed at recruiting roughly 1,000 technologists into federal government roles as part of a broader push to modernize agencies and expand the use of artificial intelligence. Led by the Office of Personnel Management and supported by at least 28 major tech companies (including Apple, Microsoft, Nvidia, OpenAI, Meta, Amazon Web Services, Palantir, and xAI), the program targets early-career professionals with skills in software engineering, AI, cybersecurity, data analytics, and technical project management, offering salaries ranging from roughly $130,000 to $195,000. Participants will work as non-partisan federal employees across agencies, receive training and mentorship from private-sector partners, and gain access to post-program job fairs and potential recruitment opportunities, though companies have made no formal hiring commitments. While largely focused on junior talent, the program also invites experienced engineering managers from the private sector to take temporary government roles, with the administration signaling plans to make Tech Force an annual and potentially expanding pipeline between Silicon Valley and Washington.

National

• California Governor Gavin Newsom sharply criticized President Donald Trump’s new executive order, calling it a move that promotes “grift and corruption” rather than genuine innovation and warning it would undermine public trust and state authority. The order, celebrated by major tech companies seeking to avoid a patchwork of state laws, has triggered immediate backlash from governors, lawmakers, unions, child-safety advocates, and civil liberties groups who question its legality and argue the White House lacks authority to override state AI statutes. California, home to many leading AI firms and recent landmark AI legislation requiring transparency and safety reporting from developers, has emerged as the focal point of resistance, with state officials signaling potential legal challenges. Critics contend the administration is attempting to nullify existing safeguards without offering a comprehensive federal alternative, framing the order as a concession to tech industry lobbying that could weaken protections for workers, children, and consumers nationwide.

• A bipartisan coalition of U.S. state attorneys general has issued formal warnings to Microsoft, Meta, Google, Apple, and other major tech companies over what they describe as “delusional” AI chatbot outputs that may pose mental health risks and violate state laws. In a public letter, the attorneys general cited reports of chatbots reinforcing users’ delusions, including cases involving suicidal ideation, and called for independent audits of AI systems. The states urged companies to allow both state and federal regulators to review their AI products. The warning comes amid the escalating federal–state conflict over AI governance.

International

• The European Commission has opened a formal competition investigation into Google over whether it unfairly uses online content from publishers and YouTube creators to train its Gemini AI model. Regulators are examining whether Google grants itself privileged access to content while restricting rivals, potentially distorting competition in the AI market. Key concerns include whether Google used publisher content without compensation or opt-out options, and whether YouTube creators are effectively required to allow their videos to be used for AI training while third-party AI developers are barred from doing the same. The probe adds to a growing list of EU actions targeting U.S. tech firms over AI, advertising, and platform dominance.

• President Donald Trump approved licenses allowing Nvidia to sell its H200 AI chips to “approved customers” in China, marking a notable shift in U.S. export controls on advanced computing technology. The administration framed the move as a balance between national security and supporting U.S. industry, emphasizing that Nvidia’s most advanced chips remain restricted and that sales will be vetted by the Commerce Department. Nvidia praised the decision, citing benefits for U.S. manufacturing and taxpayers. However, a group of Democratic senators warned that access to advanced AI chips could enhance China’s military, cyber, and industrial capabilities, reviving concerns that have long driven bipartisan efforts to limit high-end chip exports.

Just for Fun

WMATA Holiday Pop-Up Shop: Union Station. Metro-themed gifts, apparel, and DC transit memorabilia, open for a limited time this week.

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