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Kill bill character “the bride” holds her sword
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Kill AI Bill: Controversial “kill switch” rule could become AI law

California’s SB-1047 is on a path to the governor’s desk, and could threaten the AI boom.

Casey Newton

California's controversial bill to regulate the artificial intelligence industry, SB-1047, passed out of the Assembly Appropriations Committee on Thursday. If it passes the full Senate by the end of the month, it will head to Gov. Gavin Newsom for his signature. Today let’s talk about what it could mean for Meta, Google, Anthropic, and the other leading AI companies that call California home.

If an AI causes harm, should we blame the AI — or the person who used the AI? That’s the question that runs through the debate over SB-1047, and the larger question of how to regulate the technology. 

We saw a practical example of the debate this week when X released the second generation of its AI model, Grok, which has an image generation feature similar to OpenAI’s DALL-E. X is known for its laissez-faire approach to content moderation, and the new Grok is no exception. 

Users quickly put the text-to-image generator through its paces — and, as Adi Robertson found out at The Verge, Grok will make just about anything. “Subscribers to X Premium, which grants access to Grok, have been posting everything from Barack Obama doing cocaine to Donald Trump with a pregnant woman who (vaguely) resembles Kamala Harris to Trump and Harris pointing guns,” she writes, before citing several more examples of violent or edgy images that Grok created. (“Bill Gates sniffing a line of cocaine from a table with a Microsoft logo,” for example.)

One possible response to this is to get mad at Grok for creating the image. Another, conveyed with some deft sarcasm by this X user, is to suggest we should instead get mad at the person who created the image.

Tech companies would love to see a kind of Section 230 for AI.... But California’s bill takes the opposite approach

This kind of question is almost as old as the web. In the 1990s, internet service providers like Prodigy and Compuserve faced lawsuits related to potentially libelous material that their users had posted. Congress included Section 230 in the Communications Decency Act to specify that tech companies in most cases cannot be held legally liable for what their users post. 

In this case, Congress ruled that we should get mad at the person rather than the technology. And we’ve been fighting about it ever since.

Tech companies would love to see a kind of Section 230 for AI, making them immune to prosecution for what their users do with their AI tools. But California’s bill takes the opposite approach, putting the onus on tech companies to assure the government that their products won’t be used to create harm.

SB-1047 has some widely accepted provisions, such as adding legal protections for whistleblowers at AI companies, and studying the feasibility of building a public AI cloud that startups and researchers could use. 

More controversially, it requires makers of large AI models to notify the government when they train a model that exceeds a certain computing threshold and costs more than $100 million. It allows the California attorney general to seek an injunction against companies that release models that the AG considers unsafe. And it requires that large models have a “kill switch” that allows developers to stop them in the case of danger.   

SB-1047 was introduced in February by Sen. Scott Wiener, D-San Francisco. Wiener had released an outline of the bill last September and says he has gathered feedback from the industry and other stakeholders ever since. The bill passed out of the Senate’s privacy committee in June, and since then tech companies have become increasingly vocal about the risks that they argue the bill presents to the nascent AI industry.

On Thursday, before the bill passed out of the Senate’s appropriations committee, the industry won some significant concessions. The bill no longer enables the AG to sue companies for negligent safety practices before a catastrophic event occurs; it no longer creates a new state agency to monitor compliance; and it no longer requires AI labs to certify their safety testing under penalty of perjury. (AI companies had been warning loudly that the bill would result in startup founders being thrown in jail.)

The bill also no longer requires “reasonable assurance” from developers that their models won’t create harm. (Instead, they must only take “reasonable care.”) And amid widespread fears that the bill would chill the development of open-source models, the bill was amended to exempt anyone who spends less than $10 million to fine-tune an open-source AI model from the bill’s other requirements.

“It unreasonable to expect developers to completely control what end users do with their products”

“We accepted a number of very reasonable amendments proposed, and I believe we’ve addressed the core concerns expressed by Anthropic and many others in the industry,” Wiener told TechCrunch. “These amendments build on significant changes to SB 1047 I made previously to accommodate the unique needs of the open source community, which is an important source of innovation.” 

Despite those changes, the bill still faces significant criticism — and not all of it comes from the tech industry. Shortly before the bill’s passage out of committee on Thursday, a group of eight Democratic members of Congress from California wrote a letter to California Gov. Gavin Newsom urging him to veto the bill in its then-current form. The lawmakers, led by Rep. Zoe Lofgren, write that they support a wide variety of AI regulations — but that the bill goes too far in asking tech companies to predict how people use their models.

“Not only is it unreasonable to expect developers to completely control what end users do with their products, but it is difficult if not impossible to certify certain outcomes without undermining the rights of end users, including their privacy rights,” they write. 

Moreover, they write, the bill could prompt AI companies to move out of California or stop releasing their AI models here. (Meta recently decided not to release multimodal AI models in Europe over similar rules, they note.)

Wiener’s bill also has some prominent backers, including two of the godfathers of AI — Geoffrey Hinton and Yoshua Bengio. Hinton and Bengio are among those who believe that we must put strong safeguards into place now before next-generation AI models arrive and potentially wreak havoc. 

But they have been countered by dozens of other academics who published a letter arguing that the bill will interfere with their academic freedom and hamper research efforts.

California is considering more than 30 other AI bills this term

Ultimately, I suspect lawmakers will regulate both AI and the people who use it. But I’m sympathetic to the members of Congress who find SB-1047 to be — if nothing else — premature. Today’s models have shown no risk of creating catastrophic harm, and President Biden’s executive order from last year should provide at least some defense against worst-case scenarios in the near term if next-generation models prove out to be much more capable than today’s. 

And in any case, it seems preferable to regulate AI once at the national level than encouraging 50 states to all experiment with their own risk models. 

In the meantime, Lofgren notes, California is considering more than 30 other AI bills this term, including much more urgent and focused efforts to restrict the creation of synthetic, nonconsensual porn and to require disclosures when AI is used to create election ads.

“These bills have a firmer evidentiary basis than SB 1047,” Lofgren writes. And given the continued opposition to Wiener’s bill, I suspect they may also have higher odds of Newsom signing them into law. 


Casey Newton writes Platformer, a daily guide to understanding social networks and their relationships with the world. This piece was originally published on Platformer.

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Google DeepMind CEO and Nobel Prize winner Demis Hassabis shortened his prediction for when the era of AGI would be upon us.

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Meta jumps after announcing paid subscriptions for Instagram, WhatsApp, Facebook, and AI

On Wednesday, Meta announced that it’s rolling out Meta One, a suite of paid versions of its most popular apps that offer extra features like profile customization, super reactions, and story insights. Instagram Plus and Facebook Plus will cost $3.99 a month, while WhatsApp Plus is going for $2.99, according to TechCrunch.

The company is also launching two AI subscription tiers — one for $7.99 and another for $19.99 for more advanced users. People can continue using the Meta AI chatbot for free, but will now run into limits.

Together, these represent Meta’s first large-scale attempt to monetize everyday consumer use of its flagship apps through subscriptions rather than relying solely on advertising.

The stock is up nearly 3% on the news.

Meta’s head of product, Naomi Gleit, said in an Instagram post that the company has “more plans on the way for creators, businesses, and Meta AI power users.”

Meta has struggled to justify its enormous AI capital expenditure to investors since it lacks the recurring cloud revenue of its peers. New subscription revenue streams could help reassure investors that Meta has additional ways to monetize its AI investments beyond advertising.

TechCrunch reported earlier this year that Meta had been testing premium subscriptions.

Together, these represent Meta’s first large-scale attempt to monetize everyday consumer use of its flagship apps through subscriptions rather than relying solely on advertising.

The stock is up nearly 3% on the news.

Meta’s head of product, Naomi Gleit, said in an Instagram post that the company has “more plans on the way for creators, businesses, and Meta AI power users.”

Meta has struggled to justify its enormous AI capital expenditure to investors since it lacks the recurring cloud revenue of its peers. New subscription revenue streams could help reassure investors that Meta has additional ways to monetize its AI investments beyond advertising.

TechCrunch reported earlier this year that Meta had been testing premium subscriptions.

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Uber raised its stake in Germany-based Delivery Hero to nearly 37%, up from the 19.5% the companies disclosed earlier this month, according to reporting by the Financial Times. The rapid share accumulation follows a takeover bid Uber extended to the struggling food delivery company over the weekend, offering essentially no premium over where the stock is trading, a move aimed at aggressively countering DoorDash in international markets.

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Anthropic’s revenue continues to surge, shooting past OpenAI

The drip, drip, drip of leaked financials from OpenAI and Anthropic is turning into a steady flow as the two AI giants jockey for position ahead of their planned IPOs later this year.

The companies’ soaring valuations and annualized recurring revenue (ARR) have been running neck and neck for months, and The Information now reports that Anthropic is generating an estimated 35% more revenue than OpenAI.

According to The Information’s reporting, Anthropic is close to a staggering $45 billion ARR, while OpenAI is at an estimated $33 billion ARR.

Anthropic Nears $45 billion in ARR
(Chartr)

Last month, Anthropic announced that its ARR had reached $30 billion — tripling since the end of 2025. That put it ahead of OpenAI’s $24 billion ARR, which the ChatGPT maker reported at the end of March.

Then last week it was reported that OpenAI held a $1 billion lead in Q1 revenue over Anthropic.

That $45 billion ARR is a whopping 5x the $9 billion Anthropic reported at the end of 2025.

According to The Information’s reporting, Anthropic is close to a staggering $45 billion ARR, while OpenAI is at an estimated $33 billion ARR.

Anthropic Nears $45 billion in ARR
(Chartr)

Last month, Anthropic announced that its ARR had reached $30 billion — tripling since the end of 2025. That put it ahead of OpenAI’s $24 billion ARR, which the ChatGPT maker reported at the end of March.

Then last week it was reported that OpenAI held a $1 billion lead in Q1 revenue over Anthropic.

That $45 billion ARR is a whopping 5x the $9 billion Anthropic reported at the end of 2025.

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