Y Combinator Opposes California AI Safety Testing Bill

Y Combinator, the venture capitalist firm known for backing companies like Airbnb, Dropbox, and DoorDash, has voiced its opposition to a bill proposed by state Sen. Scott Wiener requiring safety testing for large AI models.

Bill Overview and Y Combinator’s Response

Sen. Scott Wiener, a San Francisco Democrat, has introduced a bill that mandates safety assessments for substantial AI models to prevent potential catastrophic harm. However, Y Combinator, along with over 140 AI startup founders, argues that this bill could severely impact California’s AI industry by deterring talent and investment. This is the first time Y Combinator, led by Garry Tan, has publicly opposed the bill, expressing concerns about the adverse effects on the numerous AI-related startups it supports.

Grassroots Opposition

Luther Lowe, Y Combinator’s head of public policy, highlighted the rapid grassroots response from their community of founders, representing the "Little Tech" voice in California. He emphasized that the bill could hinder the growth of emerging AI companies, even though it targets the largest AI models.

Senate Bill 1047 Details

Senate Bill 1047 requires developers of significant AI “frontier models” costing $100 million or more to train to conduct risk assessments. Wiener defends the bill as a reasonable precaution, aiming for a "light touch" approach. Despite this, tech companies and industry groups have increased their opposition, particularly as the bill moves through the Assembly.

Industry Concerns and Rebuttals

The opposition letter from Y Combinator to Assembly Judiciary Committee Chair Ash Kalra and privacy chair Rebecca Bauer-Kahan warned that the bill could undermine California’s tech economy and stifle competition. Startups are particularly worried about potential liability for misuse of their models and the vague language of the bill, which they fear could lead to unintended consequences.

Wiener, however, disputes claims that the bill would send developers to prison for non-compliance, calling such assertions "completely and utterly untrue." He clarified that the bill targets only the largest models and should not affect small startups.

Public Support and Legislative Process

Despite the industry backlash, the bill enjoys significant public support, with 77% of likely voters favoring SB 1047, according to a poll by David Binder Research for the Center for AI Safety. Wiener described the debate as a dispute among friends, maintaining respect for Tan and Y Combinator but asserting that their opposition is based on inaccuracies.

As the bill progresses, its implications for California's AI landscape remain a contentious issue, balancing innovation with regulatory oversight.