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Andreessen Horowitz: What You Need to Know About SB 1047

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This is a prominent VC firm's industry-perspective critique of SB 1047, useful for understanding opposition arguments to state-level AI safety legislation; represents a16z's policy stance rather than neutral analysis.

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Importance: 45/100opinion piececommentary

Summary

Andreessen Horowitz presents its analysis and opposition to California's SB 1047 AI safety bill, arguing that the legislation would stifle innovation, harm open-source AI development, and impose impractical liability on developers. The discussion covers the bill's key provisions, a16z's objections, and the broader implications for AI governance in the US.

Key Points

  • SB 1047 would impose broad safety obligations and civil liability on developers of large frontier AI models trained above a compute threshold.
  • a16z argues the bill would disproportionately burden open-source developers and startups relative to large incumbents.
  • The podcast critiques the bill's focus on hypothetical catastrophic harms rather than demonstrated, near-term AI risks.
  • a16z contends that California state-level regulation is an inappropriate venue for governing global AI development.
  • The discussion reflects broader industry tension between proactive AI safety legislation and concerns about innovation and competitiveness.

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# What You Need to Know About SB 1047: A Q&A with Anjney Midha

Anjney Midha
Posted
June 19, 2024

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_“Just because you do not take an interest in politics doesn’t mean politics won’t take an interest in you._ _― Pericles_

On May 21, the California Senate passed Bill 1047. This bill, which sets out to regulate AI at the model level, is now slated for a California Assembly vote in August. If passed, one signature from Governor Gavin Newsom could cement it into California law.

So here is what you need to know: Senate Bill 1047 is designed to apply to models trained above certain compute and cost thresholds. The bill also holds developers legally liable for the downstream use or modification of their models. Before training begins, developers would need to certify their models will not enable or provide “hazardous capabilities,” and implement a litany of safeguards to protect against such usage.

Overseeing the enforcement of the new laws would be a “frontier model division,” a newly formed oversight and regulatory agency funded by the fees and fines on developers. This agency would establish safety standards and advise on AI laws, and misrepresenting a model’s capabilities to this agency could land a developer in jail for perjury.

In this Q&A with a16z General Partner Anjney Midha (an edited version of [a recent conversation on the a16z Podcast](https://a16z.com/podcast/californias-senate-bill-1047-what-you-need-to-know/)), he breaks down the compute threshold being targeted by SB 1047, historical precedents that we can look to for comparison, the implications of this bill on the startup ecosystem, and — most importantly — what you can do about it.

**a16z:** Why is SB 1047 su

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