OpenAI Exec Warns California AI Safety Bill Could Hinder Innovation

In a recent letter, Jason Kwon, Chief Strategy Officer at OpenAI, expressed concerns that California's proposed AI safety bill, SB 1047, could slow technological progress and potentially drive companies out of the state. Kwon argued that AI regulations should be managed at the federal level to avoid a fragmented approach that could hinder innovation. He emphasized that a unified, federally-driven set of AI policies would better position the U.S. to lead in establishing global standards. Kwon's letter, addressed to California State Senator Scott Wiener, joins other AI industry voices in opposing the bill.

Overview of SB 1047: The Safe and Secure Innovation for Frontier AI Models Act

SB 1047, introduced by Senator Wiener, aims to establish preemptive safety standards for AI development. The bill mandates pre-deployment safety testing for large AI models, introduces safeguards such as whistleblower protections for AI lab employees, and grants the California Attorney General the authority to take legal action if AI models cause harm. Additionally, it proposes the creation of a public cloud computing resource called CalCompute to support AI research and innovation.

Senator Wiener’s Response to OpenAI’s Concerns

In response to Kwon’s letter, Senator Wiener defended the bill, stating that it only requires AI companies to fulfill commitments they have already made regarding safety testing of large models. Wiener pointed out that the bill applies to any company operating in California, regardless of where they are headquartered, countering the argument that it would drive businesses out of the state. He also noted that OpenAI’s letter did not critique any specific provisions of the bill, reaffirming that SB 1047 is a reasonable approach to ensuring AI safety.

Legislative Progress and Industry Reactions

The AI safety bill has sparked debate among politicians, AI companies, and organizations such as the California Chamber of Commerce. While some concerns have led to amendments, including the replacement of criminal penalties for perjury with civil penalties and the narrowing of pre-harm enforcement powers for the Attorney General, the bill continues to advance. SB 1047 has passed out of committee and is now awaiting a final vote before being sent to Governor Gavin Newsom for approval. You can read the full letter by clicking on the image below.