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OpenAI Challenges California AI Safety Bill

ChatGPT maker OpenAI has joined the opposition to a California AI Safety Bill aimed at addressing threats from artificial intelligence (AI). The Sam Altman-led startup sent a letter to the state Senator, arguing that the bill could hinder innovation and drive California’s top AI engineers and entrepreneurs to seek opportunities elsewhere. While OpenAI is of the view that AI software and systems should be launched with high safety standards, it disagrees with some elements of the proposed bill.

Critics argue that the bill could hurt AI start-ups and weaken California’s dominant position in the AI sector. Additionally, some believe that AI regulation should be implemented at the federal level rather than by individual states.

California AI Bill Faces Scrutiny

Last week, some of the bill’s more stringent elements were relaxed following strong criticism. These included requirements for companies to ensure their AI models lack “hazardous capability” and to implement a “kill switch” for emergencies. Critics argued that these measures imposed unnecessary accountability and liability on AI companies, potentially stifling the industry.

The bill, SB 1047, is due for a vote by the California State Assembly at the end of August, after which Governor Gavin Newsom will decide on its enactment. Some of the other noteworthy opponents of SB 1047 include Alphabet’s (GOOGL) Google-backed AnthropicAndreessen Horowitz, and YCombinator. Even former House Speaker Nancy Pelosi voiced her opinion against the bill last week.

Meanwhile, supporters of the bill, including State Senator Scott Wiener, are concerned that Congress may not take action at the federal level. In response to Microsoft’s (MSFT)-backed OpenAI letter, Wiener argued that tech start-ups relocating outside California would still need to comply with the bill to operate within the state.

Which Is the Best AI Stock to Buy?

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