A popular state bill could transform the AI industry. But two federal lawmakers from Silicon Valley don’t like it

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But prominent federal legislators Ro Khanna and Zoe Lofgren, Democrats who represent Silicon Valley, have expressed concern the bill could stifle innovation.

Alphabet CEO Sundar Pichai speaks at a Google I/O event in Mountain View, on May 14, 2024. California lawmakers are weighing a bill that would regulate powerful artificial intelligence systems but big tech companies, including Google, say the legislation would hamper innovation. The fate of a bill that could reshape Silicon Valley’s surging artificial intelligence industry could be decided this week, with everyone from big tech to members of Congress jockeying to influence the outcome.

The proposal has garnered bipartisan support in the state legislature and among California voters, according to recent public surveys. Introduced last February, it passed the state Senate in a 32-1 vote in May and is now making its way through the state Assembly. Khanna said that while he agrees that AI needs to be regulated, it should be done without harming California’s robust tech-startup and small-business community.

As lawmakers and AI entrepreneurs turn up the heat against the bill, Wiener held a press conference in Sacramento on Wednesday morning to discuss the risks AI poses in developing weapons of mass destruction — something Lofgren argues there’s little evidence to support. However, Christopher Nguyen, CEO of AI startup Aitomatic, based in Palo Alto, and a member of Bay Area-based AI alliance, worries that the bill may impact startup companies who rely on large language AI models such as Meta’s Llama 3.1.

In his written response to Lofgren, Wiener was emphatic that the bill would not harm California’s thriving tech economy.

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