How will California's AI law affect the stocks of companies like Google, Meta and OpenAI?

California is on the cusp of a significant change in AI regulation with the passage of SB 1047. This bill, if passed, could fundamentally impact AI development companies such as Google, Meta, OpenAI and others. This raises an important question for investors: What impact will this law have on their stocks?

New obligations, including security testing and the possibility of government intervention, could change the dynamics of the market. In this article, we look at how this law may affect the stocks of major technology players and what investors should consider in their future decisions.

California's bill SB 1047 brings a new layer of regulation to the artificial intelligence (AI) field, aiming to increase safety and accountability for AI system developers. The bill places special emphasis on companies that invest more than $100 million in developing AI models, and requires them to conduct thorough safety testing, implement safeguards, and allow state authorities to intervene if their…