The future of artificial intelligence in California hangs in the balance as a controversial bill, SB 1047, awaits Governor Gavin Newsom’s signature. This bill, which has sparked intense debate within the tech industry, would require safety testing for advanced AI models with development costs exceeding $100 million or requiring significant computing power.
Prediction market Polymarket currently indicates a 57% likelihood that the bill will pass, representing a 7% increase from previous estimates. This reflects the ongoing uncertainty surrounding the bill’s fate. The market currently values “Yes” outcomes at 59 cents and “No” outcomes at 44 cents, indicating a slight lean towards the bill’s passage.
The legislation, introduced by Democratic Senator Scott Wiener, has divided opinion among tech industry leaders. Elon Musk, CEO of Tesla and SpaceX, and founder of xAI, has publicly endorsed the bill, calling it a “tough call” but necessary. Conversely, tech giants like Alphabet, Microsoft, and Meta Platforms have raised concerns about the potential for the bill to stifle innovation and deter AI companies from operating in California.
OpenAI, the company behind ChatGPT, argues that AI regulation should be addressed at the federal level to avoid a patchwork of inconsistent regulations across different states. However, two former OpenAI employees have criticized the company’s stance, warning of “catastrophic harm to society” without proper safety precautions.
If passed, SB 1047 would grant the state attorney general the authority to take legal action against non-compliant developers, particularly in cases where AI systems pose a threat to government infrastructure or public safety.
The outcome of SB 1047 could have far-reaching implications for AI development and regulation across the United States. This topic is likely to be a key point of discussion at Benzinga’s upcoming Future of Digital Assets event on November 19, where industry experts and policymakers are expected to debate the balance between innovation and safety in the AI sector.
