Altman Urges ‘Light Touch’ R egulations is Key to AI Race

Welcome to a new week, Tech Insiders!

Today, tech leaders are sounding off on the U.S. vs. China AI race, Microsoft is banning DeepSeek internally, and more AI-related layoffs are making headlines. Oh…and it might be a good time to double-check your business email for suspicious activity.

Let’s dive in!

Here’s what you need to know today:

Sam Altman: To Win AI Race, US Needs Infrastructure (And Less Red Tape)

Turns out, innovation hates paperwork.

OpenAI CEO Sam Altman and other U.S. tech executives have urged Congress to double down on investments in AI infrastructure and adopt “light touch” regulations if the U.S. is to stay ahead of China in the global AI race.

In a Congressional hearing on AI competition, tech leaders from OpenAI, AMD, Microsoft, and others emphasized the need for non-conflicting AI policies, warning that such rules could slow down AI innovation.

In particular, the discussion flagged sustainable energy policies that could stall AI-related infrastructure development and export rules that restrict U.S. chipmakers’ global reach.

Altman specifically voiced concern over complying with “50 different sets” of AI regulations, urging lawmakers to establish a clear, unified AI strategy.

“One federal framework that is light touch, that we can understand, and it lets us move with the speed that this moment calls for, seems important and fine,” Altman said.

Why it matters: How the U.S. decides to regulate AI will directly impact who gets the biggest piece of the global AI pie. Does it take a more cautious approach, à la the EU’s more risk-averse AI Act? Or should it require going all in on speed and innovation to challenge China’s rising AI chips and models?

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Insider Intel

Microsoft to its Employees: Avoid DeepSeek

As if we needed more proof of the U.S.–China AI standoff…

Microsoft has banned employees from using DeepSeek. According to Vice Chairman and President Brad Smith, the rule was implemented due to data security and propaganda concerns related to the app’s China-based operations.

In particular, Smith mentioned the risk of employee data being stored on Chinese servers and DeepSeek answers possibly being influenced by “Chinese propaganda.”

Per Smith, the ban includes both DeepSeek’s desktop and mobile app counterparts. The AI chatbot is also not available on Microsoft’s app stores.

With a company as big as Microsoft, it’s easy to assume that other U.S.-based tech companies are considering a similar move.

Another day, another app on the ‘nope’ list.

Flash Bytes

Security Alerts

Email-Based Attacks #1 in Claims Made, Per New Report

A cyber insurance provider found that email-based attacks comprised 60% of all insurance claims in 2024.

According to cyber-insurance provider Coalition, attacks related to business email compromise (BEC) and fund transfer fraud (FTF) accounted for more than half of all claims handled in the past year. The new report noted how email-based attacks have topped the cyber-insurance list over the past three years.

Aside from the volume, the severity of BEC threats increased by 23%.

Moral of the story: Don’t. Click. That. Link.

Zero-Day Alert: Android Update Tackles Major Exploits

Google recently rolled out an Android security update that fixed 46 vulnerabilities, including an exploited FreeType zero-day.

The vulnerabilities were resolved in two parts:

The FreeType exploit (CVE-2025-27363) was resolved via the 05-01 patch. Unfortunately, Google noted that this specific vulnerability “may be under limited, targeted exploitation.” If left unpatched, the FreeType flaw could lead to arbitrary code execution.

Android users: Update accordingly.

Industry Shakeups

CrowdStrike Cuts 5% of Global Workforce Due to ‘AI Efficiencies’

CrowdStrike is laying off 5% of its workforce—roughly 500 employees—citing “efficiencies created by AI” as the driving factor.

In a letter to employees, CrowdStrike CEO George Kurtz said that integrating AI has driven efficiencies across its front and back offices and has been a “force multiplier throughout the business.”

“AI flattens our hiring curve, and helps us innovate from idea to product faster,” said Kurtz.

The CrowdStrike layoffs are just the latest in a wave of AI-related job cuts and changes in 2025, joining recent moves by Duolingo and Shopify. Both companies cited AI’s ability to streamline customer support and content generation as key reasons for reducing headcount.

The trend underscores how generative AI tools are rapidly reshaping operational structures across tech, even in roles once considered safe from automation.

Another sign that progress in tech doesn’t always mean stability in work.

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