Introduction
The fate of a bill that could reshape Silicon Valley’s surging artificial intelligence industry could be decided this week, with everyone from big tech to members of Congress jockeying to influence the outcome.
What is the Bill About?
Among the hundreds of bills scheduled for funding decisions by the powerful California State Assembly’s Appropriations Committee on Thursday is a controversial plan to regulate the AI industry. The proposed legislation, SB 1047, is polarizing Silicon Valley and has even prompted two federal lawmakers representing the area to take the unusual step of chiming in on Sacramento business.
Key Features of the Bill
The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, authored by State Sen. Scott Wiener, a San Francisco Democrat, aims to protect the public from AI-generated catastrophes. It would regulate the development and deployment of advanced AI models, specifically large-scale AI products costing at least $100 million to build, by creating a new regulatory body called the Frontier Model Division.
Opposition from Tech Giants
The bill, which faces opposition from major tech companies such as Meta and Google, also proposes the establishment of a publicly funded computing cluster program, CalCompute, aimed at developing large-scale AI models, providing operational expertise and user support, and fostering “equitable” AI innovation.
Public Support and Legislative Journey
The proposal has garnered bipartisan support in the state legislature and among California voters, according to recent public surveys. Introduced last February, it passed the state Senate in a 32-1 vote in May and is now making its way through the state Assembly.
Concerns from Congress Members
Prominent Congress members, Ro Khanna and Zoe Lofgren, Democrats who represent Silicon Valley, have expressed concern the bill could stifle innovation. Khanna stated that while he agrees that AI needs to be regulated, it should be done without harming California’s robust tech-startup and small-business community.
Khanna’s Perspective
“As the representative from Silicon Valley, I have been pushing for thoughtful regulation around artificial intelligence to protect workers and address potential risks including misinformation, deepfakes, and an increase in wealth disparity,” Khanna said in a statement. He emphasized the need for clear labeling of AI-generated products, stronger privacy provisions, and serious antitrust measures.
Lofgren’s Concerns
Meanwhile, Lofgren criticized the bill in a letter to Wiener, stating that it is “heavily skewed” toward addressing hypothetical risks while largely ignoring demonstrable AI risks like misinformation, discrimination, and workforce displacement.
Wiener’s Response
Wiener held a press conference to discuss the risks AI poses in developing weapons of mass destruction, a claim Lofgren argues lacks evidence. He stated, “This is a very reasonable and light touch piece of legislation,” emphasizing that it focuses on companies with large-scale development capabilities.
Impact on Startups
However, Christopher Nguyen, CEO of AI startup Aitomatic, worries that the bill may impact startup companies relying on large language AI models. He stated, “If we can’t keep state-of-the-art technology accessible, it will immediately impact the startup ecosystem, small businesses, and even the man on the street.”
Conclusion
Wiener was emphatic that the bill would not harm California’s thriving tech economy, referencing past predictions that have proven false. “California remains the global epicenter of technological innovation,” he asserted.
Originally Published: August 14, 2024 at 4:33 p.m.
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