OpenAI, one of the leading AI companies in California, has expressed its opposition to SB 1047, a controversial AI bill introduced by California state Senator Scott Wiener. In a letter to Senator Wiener and Governor Gavin Newsom, OpenAI argued that the bill would hinder innovation and drive talent away from California. OpenAI’s Chief Strategy Officer, Jason Kwon, emphasized the importance of protecting America’s AI edge through federal policies that provide clarity and certainty for AI labs and developers while ensuring public safety.
OpenAI’s opposition to SB 1047 aligns with the concerns raised by other industry stakeholders, including Google, Meta, Andreessen Horowitz, and prominent AI researchers. Representatives Nancy Pelosi and Zoe Lofgren, both from California, have also voiced their apprehension about the bill. OpenAI has been engaged in discussions with Senator Wiener’s office regarding the bill for several months.
However, Senator Wiener countered OpenAI’s argument, stating that the company did not criticize any specific provision of the bill. He pointed out that OpenAI’s claim that companies will leave California because of SB 1047 is invalid since the bill applies to AI model developers doing business in California, regardless of their headquarters. The bill’s scope encompasses all AI companies that meet certain size thresholds and offer their products to Californians.
While OpenAI has not commented on its real estate discussions, Bloomberg reports that the company has put plans to expand its San Francisco offices on hold due to concerns about California’s regulatory landscape. This decision reflects the potential impact of SB 1047 on the company’s operations in California.
Senator Wiener acknowledged that ideally, Congress should handle the regulation of AI models. However, he expressed skepticism about Congress taking swift action on the matter. OpenAI has endorsed several federal bills that aim to regulate AI models and establish federal bodies responsible for setting standards and guidelines. This endorsement aligns with OpenAI’s position that federal policies are more suitable for addressing AI-related concerns.
Although California lawmakers have made significant amendments to SB 1047 to make it less controversial, OpenAI remains unconvinced of the bill’s merits. The bill is now approaching its final vote in California’s Assembly and could soon reach Governor Newsom’s desk for approval. If Governor Newsom signs the bill, he may face backlash from the industry, given the opposition expressed by OpenAI and other influential AI stakeholders.
