"European Model Is One of Fear and Overregulation"... White House Launches AI Export Diplomacy in Earnest

Michael Kratsios, Chief Science Advisor of the United States, Proposes 'AI Package Deal' at APEC Global Digital and AI Forum
"Guaranteeing Open Source, AI Sovereignty, and Privacy for All"

Michael Kratsios, Director of the White House Office of Science and Technology Policy. Photo by Park Yujin

"Each of the APEC economies stands at a crossroads. You may choose to follow the European model of fear and overregulation and risk falling behind, or you can accept our proposal and engage in partnership with us."

(This afternoon, I want to recognize that each of the APEC economies has a choice before it. You can follow the European Model of fear and overregulation and be inevitably left behind... Or you can take our offer, handshake and make a deal.)"

On August 5, at the APEC Digital·AI Forum held at the Sheraton Hotel in Incheon, Michael Kratsios, Director of the White House Office of Science and Technology Policy (OSTP), stated that "the European model is one of fear and overregulation," and made a public proposal for Asian countries to join a US-led AI technology alliance. He directly criticized the European Union (EU)'s regulatory approach and presented the US-style technology diplomacy strategy, featuring the 'AI Export Package' at the forefront.

In his keynote speech, Director Kratsios said, "AI is not only an industrial tool but also a tool of diplomacy," and added, "The United States is ready to strengthen ties with its allies and build a future of shared prosperity through the export of AI infrastructure." He emphasized, "We are at a moment of technological promise, and AI should become a tool for our knowledge and responsible judgment."

The so-called 'AI Export Package' proposed by the United States is a comprehensive bundle that includes hardware, software, and financial support. Director Kratsios explained, "It covers AI-optimized chips and servers, data center storage, cloud, networks, labeling systems, models, security systems, and applications for education, healthcare, agriculture, and transportation."

In addition, the US government plans to mobilize all available federal-level financial tools to support this program, including direct loans, guarantees, technical assistance, and feasibility studies.

On this day, Director Kratsios declared, "AI is no longer a technology of the future, but a technology of the present." He also officially announced support for open-source models, apparently in recognition of the varying national demands for data sovereignty and open AI. He stressed, "The United States is a country equipped with safeguards against threats to national sovereignty, including property rights, freedom, and even an endless litigation culture," adding, "US-made products are trustworthy in terms of AI infrastructure and technology."

Director Kratsios also expressed a clear position on the direction of AI regulation. He stated, "Broad overregulation of AI leads to centralization and censorship," emphasizing innovation through free market competition. He added, "The United States still maintains a competitive edge in AI infrastructure and applied technology, and the world continues to follow American companies and ideas."