OpenAI California’s controversial bill will hurt innovation

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(Bloomberg) –OpenAI is opposing a California bill that would impose new safety requirements on artificial intelligence companies, joining a chorus of tech leaders and politicians who have recently spoken out against controversial legislation.

The San Francisco-based startup said the bill would hurt innovation in the AI ​​industry and argued that regulation on the issue should come from the federal government, not the states, according to a letter sent to the California state senator’s office on Wednesday Scott Wiener and obtained. by Bloomberg News. The letter also raised concerns that the bill, if passed, could have “broad and significant” implications for US competitiveness on artificial intelligence and national security.

SB 1047introduced by Wiener, aims to implement what his office has appointed “common sense safety standards” for companies making large AI designs above a certain size and cost threshold. The invoice, which it passed The state Senate in May would require AI companies to take steps to prevent their models from causing “critical harm,” such as enabling the development of biological weapons that can cause mass human casualties or by contributing to the financial damage of over 500 million dollars.

Under the bill, companies would have to ensure that AI systems can be shut down, take “reasonable care” that AI models do not cause catastrophe, and disclose a compliance statement to the California attorney general. If businesses do not comply with these requirements, they could be sued and face civil penalties.

The bill has received fierce opposition from many major tech companies, startups and venture capitalists who say it’s an overreach for an early-stage technology and could stifle tech innovation in the state. Some critics of the bill have expressed concern that it could drive AI companies out of California. OpenAI echoed those concerns in its letter to Wiener’s office.

“The AI ​​revolution is just beginning, and California’s unique status as a global leader in AI is fueling the state’s economic dynamism,” Jason Kwon, director of strategy at OpenAI, wrote in the letter. “SB 1047 would threaten that growth, slow the pace of innovation, and drive California’s world-class engineers and entrepreneurs to leave the state in search of greater opportunities elsewhere.”

A representative from Wiener’s office did not comment at the time of publication, but pointed to two prominent national security experts who have publicly supported the bill.

OpenAI has suspended conversations about expanding its San Francisco offices amid concerns about the uncertainty of California’s regulatory landscape, according to a person familiar with the company’s real estate plans, who spoke on condition of anonymity to discuss internal conversations. Wiener previously said the law would apply to any companies doing business in California, regardless of where their offices are located.

Critics say the bill will stifle innovation by requiring companies to submit details of their designs to state government, as well as prevent smaller open-source developers from creating startups for fear of being sued.

Last week, in an effort to address some of the pushback, Wiener amended proposed legislation to eliminate criminal liability for non-compliant technology companies, added protections for smaller open-source model developers and get rid of the proposed new “Frontier”. Model Division.” OpenAI rival Anthropic, which has a reputation for being more security-oriented than its competitors, has previously said would support the bill with some of these amendments.

But even after the amendments were introduced, the bill continued to attract opponents, including former House Speaker Nancy Pelosi, who released a statement calling “ill-informed.” A group of Democratic members of Congress also publicly opposite invoice. OpenAI and other companies in the technology industry retained lobbyists who worked on the bill, according to state filings.

In the letter, OpenAI said it had engaged with Wiener’s office for several months on the bill, but ultimately did not support it.

“We must protect America’s AI advantage with a set of federal policies — rather than state ones — that can provide clarity and certainty for AI labs and developers while preserving public safety,” according to the letter. OpenAI also said that having a clear federal framework “would help the US maintain its competitive advantage over countries like China and promote democratic governance and values ​​around the world.”

OpenAI has argued that federal agencies such as the White House Office of Science and Technology Policy, the Commerce Department and the National Security Council are better suited to govern critical AI risks than California’s state-level government agencies. The company said it supports several proposed federal legislation, such as the Future of AI Innovation Act, which provides congressional support for the new US AI Safety Institute.

SB 1047 is expected to be voted on in the California state assembly sometime this month. If passed, it will eventually move to California Gov. Gavin Newsom’s desk. While Newsom has not indicated whether he will veto the bill, he has spoken publicly about the need to promote AI innovation in California while mitigating risks.

To contact the author of this story:
Shirin Ghaffary from San Francisco at [email protected]