A new era in Congress
After this week's US midterm elections, Democrats who won majorities in the House and Senate are preparing to regulate the tech industry that worked closely with Donald Trump's second administration. According to Reuters, the party is planning a barrage of legislation aimed particularly at labs building frontier models and the data centers that run them.
Two headline measures
- Measures to protect residents from rising energy prices tied to the rapid buildout of data centers.
- A bill defining what product liability rules AI labs must follow for harms caused by their products.
According to the report, the liability measure is seen as a particularly effective way to hold AI companies accountable for the harms their products cause.
Markets react sharply
Concerns about the incoming regulatory regime sparked a massive sell-off in AI chip stocks. The tech-heavy Nasdaq Composite suffered its largest single-day loss in history.
Seeking balance with business
There are also signs Democrats want to avoid an all-out fight with business. California Representative Zoe Lofgren, who is angling to chair the House Science Committee, told Reuters the party will pursue "responsible regulations for AI while also fostering innovation." Rapidly changing technology and heated competition with China's tech sector could make that balance tricky.
