OpenAI opposes California’s AI regulation bill

OpenAI is pushing back against a proposed California bill, SB 1047, which aims to impose new safety requirements on AI companies. The San Francisco-based startup argues that the legislation would stifle innovation and that AI regulation should be managed at the federal level rather than by individual states. OpenAI also expressed concerns that the bill could negatively impact US AI and national security competitiveness.

The bill, introduced by state Senator Scott Wiener, seeks to establish safety standards for companies developing large AI models to prevent misuse in harmful ways, such as creating bioweapons or causing significant financial damage. The legislation has faced strong opposition from tech companies, who claim it could drive AI businesses out of California and hinder technological progress.

Despite amendments made by Wiener to address some of the industry’s concerns, including removing criminal liability for non-compliance and protecting smaller developers, major tech players like OpenAI remain opposed. OpenAI argues that the bill’s provisions could lead to a talent drain from California and disrupt the state’s leadership in AI innovation.

Wiener defended the bill, stating it requires companies to do what they’ve already committed regarding safety measures. He dismissed concerns about a talent exodus, noting that the law would apply to any company operating in California, regardless of location.

The bill will be voted on in the California State Assembly this month. If it passes, it will go to Governor Gavin Newsom, who has yet to express a clear stance on whether he will sign it into law, though he has spoken about balancing AI innovation with safety concerns.