OpenAI has expressed concerns about a proposed bill in California that aims to introduce new safety regulations for AI companies. According to Bloomberg, the organization believes these regulations, if enacted, could stifle technological development and maintains that such measures should be addressed at the federal level. In a response, Sen. Scott Wiener says OpenAI misses the point of the bill and none of its concerns relate to the proposed law.
Details of the Legislation
The bill, identified as SB 1047 and introduced by State Senator Wiener, seeks to establish safety protocols for companies developing large-scale AI models. The proposal includes provisions to mitigate risks such as the creation of bioweapons and financial damages exceeding $500 million. It also requires companies to ensure their AI systems can be shut down and to submit compliance statements to the state attorney general's office. Non-compliance could result in civil penalties or legal action.
Prominent tech firms, startups, and venture capitalists, including OpenAI, have criticized the legislation, arguing it may drive AI businesses out of California. OpenAI's Chief Strategy Officer, Jason Kwon, cautioned in a letter to Senator Wiener that this bill could hamper growth, stall innovation, and cause engineers and entrepreneurs to relocate.
Federal vs. Local Oversight
OpenAI suggests that AI safety regulations should be standardized at the federal level to avoid inconsistent state laws. Meanwhile, Senator Wiener contends the bill is a necessary step to ensure AI models are tested for potential catastrophic risks. He dismissed the notion of an AI talent drain, asserting that the law would apply to any entity conducting business in California.
OpenAI also flagged concerns regarding the bill's impact on U.S. competitiveness and national security. The organization shared its viewpoints in a communication to PYMNTS, stressing that stringent state regulations might jeopardize the nation's AI leadership.
In a statement, Senator Wiener remarked that OpenAI's correspondence did not directly critique individual provisions of the bill but advocated for federal oversight instead. He expressed doubts about Congress taking decisive action on AI regulation and emphasized the importance of state-level measures to enforce rigorous AI testing for better national security.
Onward Through the Legislature
The bill is progressing through the state legislature, undergoing various amendments and sparking significant discussion in the tech sector. As advancements in AI continue, policymakers face the complex task of balancing regulatory oversight with the support of innovation.
Top AI organizations and tech firms, including OpenAI, Anthropic, Cohere, and Meta, argue that these rigorous standards might hinder innovation and drive talent away from California. Y Combinator, a venture capital accelerator known for mentoring startups, has joined the debate. In a letter signed by 140 startups, Y Combinator criticizes the bill's demands, fearing they could hamper the growth of new companies.
