(TNS) — Garry Tan, the CEO of startup incubator Y Combinator, has been vocal about his concerns regarding the regulation of artificial intelligence, despite calls from many tech leaders for such controls. Recently, Tan expressed on X that State Senator Scott Wiener’s significant bill aimed at regulating AI technology could have a “chilling effect” on AI development in California.

Event Discussion

Despite his criticisms, Tan and Y Combinator hosted Wiener along with several federal officials at their San Francisco headquarters to discuss the future of AI regulation. Notable attendees included U.S. Federal Trade Commission Chair Lina Khan and U.S. Department of Justice antitrust attorney Jonathan Kanter, highlighting the national concern over the regulation of rapidly growing tech companies.

Debate on AI Legislation

Although Tan was present during Wiener’s speech, there was no direct debate on the contentious AI legislation. A surprise speaker, Andrew Ng, co-founder of Google Brain, criticized Wiener’s bill, suggesting that requiring AI developers to prevent misuse is akin to asking electric motor manufacturers to ensure their products aren’t used illegally. Ng stated, “I would stop making electric motors.”

Wiener’s Perspective

Wiener remains open to amendments from the tech community, including suggestions from Anthropic, a San Francisco-based AI model developer. He acknowledged the excitement surrounding AI but emphasized the inherent risks that come with powerful technologies. His bill aims to address these risks by mandating safety tests for future AI programs.

Concerns from the Tech Community

Startup founder Jeremy Nixon raised concerns about whether the bill could hinder the release of new AI models, a situation he noted has already occurred in the European Union due to similar regulations. Wiener responded that he believed this outcome was unlikely, asserting that his bill is much narrower than the EU’s AI law.

Ongoing Disagreement

After the event, Tan reiterated his disagreement with Wiener, expressing worries that the legislation would complicate the development of new AI tools for startup founders. Many in the tech industry, including venture capitalists and companies like Meta, have criticized the bill, arguing it could hold them liable for third-party misuse of their technology.

Potential Global Implications

Entrepreneur Marc Andreessen warned that regulating open-source companies could lead to severe consequences, suggesting that while bombs may not fall, the multibillion-dollar AI industry could be driven out of California. Wiener acknowledged that tech companies have previously threatened to leave the state due to his proposed laws, but such exits have not materialized.

Liability and Responsibility

The argument from firms like Andreessen Horowitz is that regulations might deter companies from developing open-source AI models that startups could utilize for free. If a third party misuses their technology, the original developers could face repercussions. Wiener has stated that he has listened to these critiques and made amendments to the bill to protect large companies like Meta and OpenAI from undue liability.

Conclusion

Wiener clarified that the bill targets large AI companies and models that do not yet exist, incorporating amendments to limit liability for significant model creators if their technology is altered and misused. FTC Chair Khan emphasized the importance of maintaining openness in the AI industry, particularly given the substantial investment required to develop AI models from scratch.

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