Technology
Here’s what’s illegal under California’s 18 (and counting) new AI laws
In September, California Governor Gavin Newsom considered 38 AI-related bills, including the highly controversial SB 1047, which the state Legislature sent to his desk for final approval. On Sunday, he vetoed SB 1047, marking the tip of the road for California’s controversial AI bill that was intended to forestall AI-related disasters, but he signed greater than a dozen other AI-related bills into law this month. These bills seek to deal with probably the most pressing issues surrounding AI: every part from Al risks to fake nudes created by AI image generators to Hollywood studios creating AI clones of deceased performers.
“California, home to most of the world’s leading artificial intelligence companies, is working to leverage these revolutionary technologies to help address pressing challenges while examining their risks,” Governor Newsom’s office said in a press release. press release.
So far, Governor Newsom has signed 18 AI-related bills, a few of that are probably the most far-reaching U.S. generative AI bills up to now. Here’s what they do.
AI Risk
On Sunday, Governor Newsom signed SB 896 into law, which requires the California Office of Emergency Services to conduct risk analyzes of potential threats posed by generative artificial intelligence. CalOES will work with pioneering model corporations resembling OpenAI and Anthropic to research the potential threats posed by AI to critical government infrastructure, in addition to threats that may lead to mass casualty incidents.
Training data
Another bill signed by Newsom this month requires generative AI providers to reveal data used to coach their AI systems in documentation posted on their website. AB 2013 enters into force in 2026 and requires artificial intelligence providers to publish: the sources of knowledge sets, an outline of how the information is used, the number of knowledge points within the set, whether copyrighted or licensed data is included, the period wherein the information was collected m .amongst others standards.
Privacy and artificial intelligence systems
Newsom also signed AB 1008 on Sunday, which makes it clear that California’s privacy laws also cover generative artificial intelligence systems. This signifies that if an AI system like ChatGPT reveals someone’s personal information (name, address, biometrics), California’s privacy laws will limit how corporations can use and cash in on that data.
Education
Newsom signed AB 2876 this month, which requires the California State Board of Education to incorporate “artificial intelligence skills” in math, science and history curricula and instructional materials. This means California schools can start teaching students the fundamentals of how artificial intelligence works, in addition to the restrictions, impacts and ethical considerations of using the technology.
Another new law SB 1288requires California superintendents to create working groups to check how artificial intelligence is utilized in public school education.
Definition of artificial intelligence
This month, Newsom signed laws establishing a uniform definition of artificial intelligence in California law. AB 2885 states that artificial intelligence is defined as “an engineered or machine-based system that varies in level of autonomy and which, for explicit or implicit purposes, can infer from the inputs it receives how to generate outputs that can influence environments physical or virtual.” “
Healthcare
Another act signed in September is the so-called AB 3030which requires healthcare providers to reveal once they use generative artificial intelligence to speak with a patient, particularly when those communications include the patient’s clinical information.
Meanwhile, Newsom recently signed the contract SB1120which puts limits on how healthcare providers and health insurers can automate their services. The law ensures that licensed physicians oversee the usage of artificial intelligence tools in these facilities.
Automatic AI connections
Last Friday, Governor Newsom signed a bill requiring robocallers to reveal whether or not they use AI-generated voices. AB 2905 is meant to forestall one other occurrence of a fake robocall resembling Joe Biden’s voice, which misled many citizens in New Hampshire earlier this yr.
Deeply fake pornography
On Sunday, Newsom signed it AB 1831 A law has entered into force that extends the scope of existing regulations on child pornography to incorporate content generated by artificial intelligence systems.
Last week, Newsom signed two bills targeting the creation and spread of false nudes. SB926 criminalizes this act by making it illegal to blackmail someone with AI-generated nude photos that resemble them.
SB981which also took effect on Thursday, requires social media platforms to establish channels where users can report false acts that resemble them. The content must then be temporarily blocked while it’s investigated by the platform and permanently removed if confirmed.
Watermarks
Also on Thursday, Newsom signed a bill to assist the general public discover content generated by artificial intelligence. SB942 requires commonly used generative AI systems to reveal of their content provenance data that it was generated by AI. For example, all images created by Dall-E with OpenAI now require a small tag of their metadata indicating that they were generated by AI.
Many AI corporations are already doing this, and there are several free tools that might help people read origination data and detect AI-generated content.
Deep election fraud
Earlier this week, California’s governor signed three bills aimed toward combating AI deepfakes that might influence elections.
One of California’s new laws AB 2655requires large online platforms like Facebook and X to remove or label election-related artificial intelligence misinformation and create channels for reporting such content. Candidates and elected officials can seek an injunction if a big online platform fails to comply with the bill.
Another law, AB 2839is aimed toward social media users who post or repost artificial intelligence misinformation that might mislead voters in regards to the upcoming election. The law went into effect immediately on Tuesday, and Newsom suggested that Elon Musk could possibly be liable to violating it.
Under a new California law, AI-generated political ads now require direct disclosure. AB 2355. This means Trump may not find a way to post artificial intelligence falsehoods featuring Taylor Swift supporting him on Truth Social (she endorsed Kamala Harris). The FCC has proposed the same national disclosure requirement and has already ruled that robocalls using AI-generated voices are illegal.
Actors and artificial intelligence
The two bills Newsom signed into law earlier this month — pushed by SAG-AFTRA, the nation’s largest film and tv actors’ union — create new standards for California’s media industry. AB 2602 requires studios to acquire permission from an actor before creating an AI-generated replica of his or her voice or likeness.
Meanwhile, AB 1836 prohibits studios from creating digital replicas of deceased performers without the consent of their estates (e.g., the recent “Alien” and “Star Wars” movies, in addition to other movies, used legally approved replicas).
SB 1047 is vetoed
Governor Newsom still has several AI-related bills to take up by the tip of September. However, SB 1047 isn’t one among them – the bill was vetoed on Sunday.
In a letter explaining your decisionNewsom said SB 1047 focused too narrowly on large artificial intelligence systems that might “give the public a false sense of security.” California’s governor noted that small AI models could possibly be as dangerous because the models targeted by SB 1047, and said a more flexible regulatory approach was needed.
During a conversation with Salesforce CEO Mark Benioff earlier this month on the Dreamforce 2024 conference, Newsom was in a position to tip his hat about SB 1047 and the way he thinks about broader regulation of the unreal intelligence industry.
“There is one bill that is kind of too big in terms of public discourse and awareness; that’s SB 1047,” Newsom said on stage this month. “What are the demonstrable risks associated with AI and what are the hypothetical risks? I can’t solve everything. What can we solve? That’s why we’re taking this approach across the spectrum on this issue.”
Check back to this text for updates on which AI laws the California governor is and is not signing.
Technology
Zepto raises another $350 million amid retail upheaval in India
Zepto has secured $350 million in latest financing, its third round of financing in six months, because the Indian high-speed trading startup strengthens its position against competitors ahead of a planned public offering next yr.
Indian family offices, high-net-worth individuals and asset manager Motilal Oswal invested in the round, maintaining Zepto’s $5 billion valuation. Motilal co-founder Raamdeo Agrawal, family offices Mankind Pharma, RP-Sanjiv Goenka, Cello, Haldiram’s, Sekhsaria and Kalyan, in addition to stars Amitabh Bachchan and Sachin Tendulkar are amongst those backing the brand new enterprise, which is India’s largest fully national primary round.
The funding push comes as Zepto rushes so as to add Indian investors to its capitalization table, with foreign ownership now exceeding two-thirds. TechCrunch first reported on the brand new round’s deliberations last month. The Mumbai-based startup has raised over $1.35 billion since June.
Fast commerce sales – delivering groceries and other items to customers’ doors in 10 minutes – will exceed $6 billion this yr in India. Morgan Stanley predicts that this market shall be value $42 billion by 2030, accounting for 18.4% of total e-commerce and a pair of.5% of retail sales. These strong growth prospects have forced established players including Flipkart, Myntra and Nykaa to cut back delivery times as they lose touch with specialized delivery apps.
While high-speed commerce has not taken off in many of the world, the model seems to work particularly well in India, where unorganized retail stores are ever-present.
High-speed trading platforms are creating “parallel trading for consumers seeking convenience” in India, Morgan Stanley wrote in a note this month.
Zepto and its rivals – Zomato-owned Blinkit, Swiggy-owned Instamart and Tata-owned BigBasket – currently operate on lower margins than traditional retail, and Morgan Stanley expects market leaders to realize contribution margins of 7-8% and adjusted EBITDA margins to greater than 5% by 2030. (Zepto currently spends about 35 million dollars monthly).
An investor presentation reviewed by TechCrunch shows that Zepto, which handles greater than 7 million total orders every day in greater than 17 cities, is heading in the right direction to realize annual sales of $2 billion. It anticipates 150% growth over the following 12 months, CEO Aadit Palicha told investors in August. The startup plans to go public in India next yr.
However, the rapid growth of high-speed trading has had a devastating impact on the mom-and-pop stores that dot hundreds of Indian cities, towns and villages.
According to the All India Federation of Consumer Products Distributors, about 200,000 local stores closed last yr, with 90,000 in major cities where high-speed trading is more prevalent.
The federation has warned that without regulatory intervention, more local shops shall be vulnerable to closure as fast trading platforms prioritize growth over sustainable practices.
Zepto said it has created job opportunities for tons of of hundreds of gig employees. “From day one, our vision has been to play a small role in nation building, create millions of jobs and offer better services to Indian consumers,” Palicha said in an announcement.
Regulatory challenges arise. Unless an e-commerce company is a majority shareholder of an Indian company or person, current regulations prevent it from operating on a listing model. Fast trading corporations don’t currently follow these rules.
Technology
Wiz acquires Dazz for $450 million to expand cybersecurity platform
Wizardone of the talked about names within the cybersecurity world, is making a major acquisition to expand its reach of cloud security products, especially amongst developers. This is buying Dazzlespecialist in solving security problems and risk management. Sources say the deal is valued at $450 million, which incorporates money and stock.
This is a leap within the startup’s latest round of funding. In July, we reported that Dazz had raised $50 million at a post-money valuation of just below $400 million.
Remediation and posture management – two areas of focus for Dazz – are key services within the cybersecurity market that Wiz hasn’t sorted in addition to it wanted.
“Dazz is a leader in this market, with the best talent and the best customers, which fits perfectly into the company culture,” Assaf Rappaport, CEO of Wiz, said in an interview.
Remediation, which refers to helping you understand and resolve vulnerabilities, shapes how an enterprise actually handles the various vulnerability alerts it could receive from the network. Posture management is a more preventive product: it allows a company to higher understand the scale, shape and performance of its network from a perspective, allowing it to construct higher security services around it.
Dazz will proceed to operate as a separate entity while it’s integrated into the larger Wiz stack. Wiz has made a reputation for itself as a “one-stop shop,” and Rappaport said the integrated offering will proceed to be a core a part of it.
He believes this contrasts with what number of other SaaS corporations are built. In the safety industry, there are, Rappaport said, “a lot of Frankenstein mashups where companies prioritize revenue over building a single technology stack that actually works as a platform.” It could be assumed that integration is much more necessary in cybersecurity than in other areas of enterprise IT.
Wiz and Dazz already had an in depth relationship before this deal. Merat Bahat — the CEO who co-founded Dazz with Tomer Schwartz and Yuval Ofir (CTO and VP of R&D, respectively) — worked closely with Assaf Rappaport at Microsoft, which acquired his previous startup Adallom.
After Rappaport left to found Wiz together with his former Adallom co-founders, CTO Ami Luttwak, VP of Product Yinon Costica and VP of R&D Roy Reznik, Bahat was one in all the primary investors. Similarly, when Bahat founded Dazz, Assaf was a small investor in it.
The connection goes deeper than work colleagues. Bahat and Rappaport are also close friends, and she or he was the second family of Mickey, Rappaport’s beloved dog, referred to as Chief Dog Officer Wiz (together with LinkedIn profile). Once the deal was done, the 2 faced two very sad events: each Bahat and Mika’s mother died.
“We hope for a new chapter of positivity,” Bahat said. The cycle of life does indeed proceed.
Rumors of this takeover began to appear earlier this month; Rappaport confirmed that they then began talking seriously.
But that is not the one M&A conversation Wiz has gotten involved in. Earlier this 12 months, Google tried to buy Wiz itself for $23 billion to construct a major cybersecurity business. Wiz walked away from the deal, which might have been the biggest in Google’s history, partly because Rappaport believed Wiz could turn into a fair larger company by itself terms. And that is what this agreement goals to do.
This acquisition is a test for Wiz, which earlier this 12 months filled its coffers with $1 billion solely for M&A purposes (it has raised almost $2 billion in total, and we hear the subsequent round will close in just a few weeks). . Other offers included purchasing Gem security for $350 million, but Dazz is its largest acquisition ever.
More mergers and acquisitions could also be coming. “We believe next year will be an acquisition year for us,” Rappaport said.
In an interview with TC, Luttwak said that one in all Wiz’s priorities now’s to create more tools for developers that have in mind what they need to do their jobs.
Enterprises have made significant investments in cloud services to speed up operations and make their IT more agile, but this shift has include a significantly modified security profile for these organizations: network and data architectures are more complex and attack surfaces are larger, creating opportunities for malicious hackers to find ways to to hack into these systems. Artificial intelligence makes all of this far more difficult when it comes to malicious attackers. (It’s also a chance: the brand new generation of tools for our defense relies on artificial intelligence.)
Wiz’s unique selling point is its all-in-one approach. Drawing data from AWS, Azure, Google Cloud and other cloud environments, Wiz scans applications, data and network processes for security risk aspects and provides its users with a series of detailed views to understand where these threats occur, offering over a dozen products covering the areas, corresponding to code security, container environment security, and provide chain security, in addition to quite a few partner integrations for those working with other vendors (or to enable features that Wiz doesn’t offer directly).
Indeed, Wiz offered some extent of repair to help prioritize and fix problems, but as Luttwak said, the Dazz product is solely higher.
“We now have a platform that actually provides a 360-degree view of risk across infrastructure and applications,” he said. “Dazz is a leader in attack surface management, the ability to collect vulnerability signals from the application layer across the entire stack and build the most incredible context that allows you to trace the situation back to engineers to help with remediation.”
For Dazz’s part, once I interviewed Bahat in July 2024, when Dazz raised $50 million at a $350 million valuation, she extolled the virtues of constructing strong solutions and this week said the third quarter was “amazing.”
“But market dynamics are what trigger these types of transactions,” she said. She confirmed that Dazz had also received takeover offers from other corporations. “If you think about the customers and joint customers that we have with Wiz, it makes sense for them to have it on one platform.”
And a few of Dazz’s competitors are still going it alone: Cyera, like Dazz, an authority in attack surface management, just yesterday announced a rise of $300 million at a valuation of $5 billion (which confirms our information). But what’s going to he do with this money? Make acquisitions, after all.
Wiz says it currently has annual recurring revenue of $500 million (it has a goal of $1 billion ARR next 12 months) and has greater than 45% of its Fortune 100 customers. Dazz said ARR is within the tens of hundreds of thousands of dollars and currently growing 500% on a customer base of roughly 100 organizations.
Technology
Department of Justice: Google must sell Chrome to end its monopoly
The U.S. Department of Justice argued Wednesday that Google should sell its Chrome browser as part of a countermeasure to break the corporate’s illegal monopoly on online search, according to a filing with the Justice Department. United States District Court for the District of Columbia. If the answer proposed by the Department of Justice is approved, Google won’t have the option to re-enter the search marketplace for five years.
Ultimately, it’ll be District Court Judge Amit Mehta who will determine what the ultimate punishment for Google might be. This decision could fundamentally change one of the most important firms on the planet and alter the structure of the Internet as we understand it. This phase of the method is anticipated to begin sometime in 2025.
In August, Judge Mehta ruled that Google constituted an illegal monopoly since it abused its power within the search industry. The judge also questioned Google’s control over various web gateways and the corporate’s payments to third parties to maintain its status because the default search engine.
The Department of Justice’s latest filing says Google’s ownership of Android and Chrome, that are key distribution channels for its search business, poses a “significant challenge” to remediation to ensure a competitive search market.
The Justice Department has proposed other remedies to address the search engine giant’s monopoly, including Google spinning off its Android mobile operating system. The filing indicated that Google and other partners may oppose the spin-off and suggested stringent countermeasures, including ending the use of Android to the detriment of search engine competitors. The Department of Justice has suggested that if Google doesn’t impose restrictions on Android, it must be forced to sell it.
Prosecutors also argued that the corporate must be barred from stepping into exclusionary third-party agreements with browser or phone firms, resembling Google’s agreement with Apple to be the default search engine on all Apple products.
The Justice Department also argued that Google should license its search data, together with ad click data, to competitors.
Additionally, the Department of Justice also set conditions prohibiting Google from re-entering the browser market five years after the spin-off of Chrome. Additionally, it also proposed that after the sale of Chrome, Google mustn’t acquire or own any competing ad text search engine, query-based AI product, or ad technology. Moreover, the document identifies provisions that allow publishers to opt out of Google using their data to train artificial intelligence models.
If the court accepts these measures, Google will face a serious setback as a competitor to OpenAI, Microsoft and Anthropic in AI technology.
Google’s answer
In response, Google said the Department of Justice’s latest filing constitutes a “radical interventionist program” that may harm U.S. residents and the country’s technological prowess on the planet.
“The Department of Justice’s wildly overblown proposal goes far beyond the Court’s decision. “It would destroy the entire range of Google products – even beyond search – that people love and find useful in their everyday lives,” said Google’s president of global affairs and chief legal officer Kent Walker. blog post.
Walker made additional arguments that the proposal would threaten user security and privacy, degrade the standard of the Chrome and Android browsers, and harm services resembling Mozilla Firefox, which depends upon Google’s search engine.
He added that if the proposal is adopted, it could make it tougher for people to access Google search. Moreover, it could hurt the corporate’s prospects within the AI race.
“The Justice Department’s approach would lead to unprecedented government overreach that would harm American consumers, developers and small businesses and threaten America’s global economic and technological leadership at precisely the moment when it is needed most,” he said.
The company is to submit a response to the above request next month.
Wednesday’s filing confirms earlier reports that prosecutors were considering getting Google to spin off Chrome, which controls about 61% of the U.S. browser market. According to to the StatCounter web traffic service.
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