Good day, Vertica team. Here is today's AI update for August 28, 2024.California has taken a significant step toward regulating artificial intelligence by passing the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, known as SB 1047, in the state Assembly. The bill, which was approved with 41 votes in favor and 9 against, aims to ensure that AI technology does not cause major harm and establishes a framework for AI regulations in the United States.Key provisions of the bill mandate several precautions for AI companies operating within California. These include:- Emergency shutdown capabilities. AI companies must ensure their models can be quickly and fully shut down if necessary.- Protection against unsafe modifications. Models must be safeguarded against post-training modifications.- Rigorous testing procedures. Continuous testing must be conducted to evaluate whether a model or its derivatives pose risks of causing or enabling critical harm.Senator Scott Wiener, the primary author of the bill, has emphasized its importance, stating that the bill merely requires AI labs to follow through on safety commitments they have already made. Wiener noted that the legislation had been refined with input from various stakeholders, including open-source advocates and AI companies like Anthropic.Despite support from several quarters, SB 1047 has faced significant criticism. Notably, OpenAI, Anthropic, and politicians such as Zoe Lofgren and Nancy Pelosi have voiced concerns that the bill’s focus on catastrophic harms might unduly affect small and open-source AI developers. The California Chamber of Commerce has also been a vocal critic.To address some of these concerns, the bill was amended to replace potential criminal penalties with civil ones, narrow the enforcement powers granted to California’s Attorney General, and adjust requirements for membership on the newly created Board of Frontier Models.The bill will now return to the state Senate for a confirmation vote and possible amendments before it reaches Governor Gavin Newsom’s desk. Governor Newsom will have until the end of September to sign the bill into law or veto it.Anthropic declined to comment on the bill beyond a letter sent by CEO Dario Amodei to Governor Newsom. Similarly, OpenAI declined to comment but referred to a letter from their Chief Strategy Officer, Jason Kwon, to Senator Wiener.The passage of SB 1047 marks a pivotal moment in AI regulation, offering a potential blueprint for future legislation at both state and federal levels in the United States. As AI technology continues to advance rapidly, the bill represents an attempt to balance innovation with safety concerns, a topic that has stirred considerable debate within the tech community.The developments in California may set precedents that influence AI regulation not only in the US but also globally, signaling a shift towards more structured and safety-oriented AI development practices.Moving on to our other key stories.OpenAI is reportedly close to securing funding at a valuation exceeding $100 billion. Thrive Capital is expected to lead the round, investing around $1 billion. The move underscores strong investor confidence in OpenAI's growth potential. OpenAI's CFO, Sarah Friar, hinted at the funding efforts in an internal memo, though specific details were not disclosed.Next, Nvidia reported record second-quarter revenue of $30 billion for fiscal year 2025, a 122% increase year-over-year. This surge is driven by high demand for Nvidia’s AI chips. Data center revenue hit a record $26.27 billion, growing 154% year-over-year, primarily due to sales of Hopper GPUs used for training large language models. Nvidia anticipates Blackwell AI platform revenues to ramp up in the fourth quarter of fiscal 2026. Despite slight share price fluctuations, Nvidia's stock has risen approximately 160% this year.In other notable news.Google resumes its feature allowing the
