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The AI bill driving a wedge through Silicon Valley

California’s Gavin Newsom has until September 30 to decide whether to sign legislation that will reach far beyond the state

California’s bid to regulate artificial intelligence has riven Silicon Valley, as opponents warn that the legal framework could undermine competition and America’s position as the world leader in the technology.

Having waged a fierce battle to amend or water down the bill as it passed through California’s legislature, executives at companies including OpenAI and Meta are waiting anxiously to see if Gavin Newsom, the state’s Democratic governor, will sign it into law. He has until September 30 to decide.

California is the heart of the burgeoning AI industry, and with no federal law to regulate the technology across the US — let alone a uniform global standard — the ramifications would extend far beyond the state.

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