US senate removes controversial 'AI moratorium' from budget bill | TechCrunch
Briefly

U.S. senators voted overwhelmingly to remove a 10-year ban on states regulating AI, originally part of the Trump administration's reconciliation bill. Introduced by Sen. Ted Cruz, the AI moratorium was supported by leading Silicon Valley executives to avoid a regulatory patchwork that might hinder innovation. However, bipartisan opposition emerged, with lawmakers indicating that the ban would weaken consumer protections and reduce oversight of powerful AI firms. An amendment from Sen. Marsha Blackburn and Sen. Maria Cantwell ultimately led to the provision's removal, resulting in a Senate vote of 99-1.
The provision to the reconciliation bill was introduced by Sen. Ted Cruz (R-TX). Many prominent Silicon Valley executives were in favor of the so-called "AI moratorium," which they said would prevent states from forming an unworkable patchwork of regulation that could stifle AI innovation.
Opposition to the provision became a bipartisan issue, as most Democrats and many Republicans warned that the ban on state regulation would harm consumers, and let powerful AI companies operate with little oversight.
After going back and forth over the provision, Sen. Marsha Blackburn (R-TN) on Monday offered an amendment to strip the provision alongside Sen. Maria Cantwell (D-WA). Blackburn originally opposed the provision, but she came to an agreement with Cruz over the weekend that shortened the proposed ban from ten years to five.
The Senate voted 99-1 to strip the AI moratorium.
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