AI Startups Lobbying Frenzy: OpenAI, Anthropic, and Cohere Spend Big on Federal Influence
Techcrunch2 months ago
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AI Startups Lobbying Frenzy: OpenAI, Anthropic, and Cohere Spend Big on Federal Influence

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lobbying
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regulation
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Summary:

  • OpenAI, the creator of ChatGPT, has dramatically increased its lobbying spending, reaching $800,000 in the first half of 2024.

  • Anthropic, a rival to OpenAI, is also investing heavily in lobbying, aiming for a half-million-dollar spend this year.

  • Smaller AI firms like Cohere are also committing resources to lobbying efforts, indicating a broader trend in the industry.

  • The surge in lobbying comes during an election year with differing stances on AI regulation from leading presidential candidates.

  • The U.S. Commerce Department's report suggests potential government monitoring of new AI models while advocating for their release.

  • While Congress hasn't passed comprehensive AI legislation, state and local governments are actively proposing laws, driving a need for influencing these regulations.

  • AI companies are also facing potential antitrust investigations from the U.S. Department of Justice and Federal Trade Commission (FTC).

  • The increased lobbying activity reflects the significant impact of AI and the urgency for establishing clear regulations.

AI Lobbying Heats Up: Big Players Spend Millions on Federal Influence

The world of artificial intelligence (AI) is experiencing a lobbying boom, with startups like OpenAI, Cohere, and Anthropic pouring resources into influencing federal policy.

OpenAI, the creator of ChatGPT, has significantly increased its lobbying expenditures, spending $800,000 in the first half of 2024, a dramatic increase from $260,000 in all of 2023. The company has expanded its team of outside lobbyists from three to around 15, and has hired prominent figures like former Republican Sen. Norm Coleman and ex-NSA director Paul Nakasone.

OpenAI rival Anthropic is also investing heavily, on track to spend half a million dollars on lobbying this year. The company has hired former AWS lobbyist Stoney Burke and Jed Bhuta, and has an in-house lobbyist.

Even smaller AI firms like Cohere, which specializes in custom generative AI models for enterprises, have increased their lobbying efforts, spending $120,000 in the first half of 2024 compared to $70,000 in 2023.

This surge in lobbying comes amid an election year where leading presidential candidates have expressed divergent views on AI regulation. Vice President Kamala Harris, the Democratic frontrunner, supports federal oversight of AI, while former President Donald Trump, a Republican contender, advocates for deregulation.

The U.S. Commerce Department's recent report suggests a possible direction for the Harris Administration, recommending the release of new AI models but also proposing government monitoring for potential risks.

While Congress hasn't passed comprehensive legislation on AI, state and local governments are stepping up with proposed laws, leading to a rush to influence these regulations. OpenAI, for example, has publicly supported Senate bills that aim to establish a federal AI rulemaking body and provide resources for AI research and education.

As the November election approaches, AI companies are also facing potential antitrust investigations from the U.S. Department of Justice and Federal Trade Commission (FTC). The FTC is seeking information on Amazon's partnership with AI startup Adept, while both the Justice Department and FTC are investigating Microsoft's acquisition of Inflection staff. Microsoft's decision to relinquish its observer seat on OpenAI's board is likely a move to address antitrust concerns given its significant investment in the company.

The increased lobbying activity reflects the growing influence of AI in society and the critical need for policymakers to establish clear regulations and guidelines for this rapidly evolving technology.

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