However, many in California’s powerful tech industry are concerned. They have warned of unintended consequences that could slow down the state’s thriving AI ecosystem, which includes companies like ChatGPT-maker OpenAI and tech giant Google.
“In the case of 1047, the companies that create the models are liable for what you do with the models. And so a big part of the debate has been, is that an appropriate form of liability, and what impact will that have on the … AI industry,” said Jeremy Nixon, CEO of AI hackathon society AGI House.
POSSIBILITY OF CHILLING EFFECT
The Bill’s opponents believe that if it is signed, it would have a chilling effect on AI investment and development in California, opening the door for countries like China to overtake the US in the technology.
California officials would have a lot more say in how AI is developed, with the legal right to sue companies if they are not in compliance.
Open source models, like Meta’s Llama – with code made freely available – may become particularly risky since the developer could be liable for criminal activity stemming from modifications to its models. Some believe that could stifle competition.
“As a hacker, you want to make sure you have access to the best tools. There’s some sense that the best tools may live longer (and) be open source,” said Nixon.
“So closed companies like OpenAI and Anthropic, which don’t give you access to their model, would dominate the world of state-of-the-art models.”
San Francisco-based Anthropic is a rival to OpenAI and is backed by Amazon and Alphabet.
Still, the Bill has diverse supporters including Tesla CEO Elon Musk. The proposed law is also getting a boost on social media from celebrities like Hollywood actor Joseph Gordon-Levitt.
