AI and Tech under the One Big Beautiful Bill Act: Key Restrictions, Risks, and Opportunities
On July 4, 2025, President Trump signed “The One Big Beautiful Bill Act” into law. While much attention has focused on the bill’s rejection of a proposed 10-year federal ban on state and local artificial intelligence (“AI”) regulation, the legislation also enacts sweeping new requirements with major implications for AI and technology companies. Key provisions include stringent restrictions on foreign influence in the AI supply chain, broad extraterritorial rules targeting “prohibited foreign entities,” enhanced domestic sourcing mandates, and rigorous supply chain integrity requirements. These measures present significant compliance and operational challenges, especially for multinational firms with global operations or foreign partners. This Alert highlights the most important aspects of the new law for companies in the AI sector, with a focus on the practical impact of foreign control restrictions, technology licensing limitations, and related compliance obligations. 1. Substantial F...