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Boston Globe
25-06-2025
- Business
- Boston Globe
AI titans flex clout to leverage tax bill to override state laws
Palmer Luckey, founder of defense tech company Anduril Industries Inc., took to the social media platform X on Wednesday to implore Republican lawmakers not to drop the ban on state regulation from the legislation, calling it 'absolutely critical for the economic, educational, military and cultural future of America.' Advertisement Marc Andreessen, head of the leading venture capital firm Andreessen Horowitz and one of Trump's most prominent tech industry allies, on Wednesday also shared posts advocating for the provision. Even if the pause on state AI laws is excluded from the tax bill, the maneuver shows key power centers of the Republican party firmly behind the AI industry's wish for minimal regulatory interference as the emerging technology enters a potentially pivotal phase. That influence is likely to shape the Trump administration's executive actions and possibly future legislation unburdened by the tight timetable and complicated politics of the tax bill. Trump Commerce Secretary Howard Lutnick joined the social media campaign Wednesday on behalf of the ban, calling it essential to 'to stay ahead of our adversaries and keep America at the forefront of AI.' Advertisement The 10-year ban tucked into the House version of the tax bill and current Senate draft would block states from enforcing AI laws. In the absence of federal regulation, states over the past few years have enacted dozens of new laws — curbing deepfakes, protecting artists, banning algorithmic discrimination — aimed at preventing harms from the nascent technology. The ban is a top priority for big tech companies like Meta Platforms Inc. as well as venture capital firms, such as Andreessen Horowitz, which backs smaller but still powerful players. 'Don't expect it to disappear,' said Joseph Hoefer, AI policy lead at lobbying firm Monument Advocacy, who represents clients including Booz Allen Hamilton and Atlassian Corp. 'This provision, or some version of it, will likely become a mainstay in any serious AI legislation going forward.' But the unified Democratic opposition to Trump's tax bill and the president's eagerness for quick passage give Republican opponents of a ban a lot of leverage since the party can afford to lose only three Republican senators. At least four Republican senators expressed reservations about the ban on AI regulation in interviews. Republican senators Marsha Blackburn of Tennessee and Josh Hawley of Missouri have both vowed to strip the provision from the legislation. 'We cannot prohibit states across the country from protecting Americans, including the vibrant creative community in Tennessee, from the harms of AI,' said Blackburn, whose state has a new law that protects musicians and artists from unauthorized AI use and is home to country music capital Nashville. Florida Republican Senator Rick Scott told Bloomberg News he believes Congress has to 'continue to allow our states to innovate.' Senator Ron Johnson of Wisconsin said a decade-long freeze 'might be a little long.' Advertisement Senate Commerce Chair Ted Cruz, a Texas Republican, on Wednesday released an updated version of his committee's portion of the bill that specifies states could still pass 'tech-neutral laws' that impact AI, such as broader consumer protection or intellectual property laws. Supporters of the ban, including industry lobbyists, are seizing on the opportunity to influence congressional action by flooding the Hill this week to convince Republicans the AI provision should remain in Trump's bill. Companies have largely deferred to trade associations like the Chamber of Commerce and tech groups like INCOMPAS in the lobbying fight. The Chamber of Commerce in a statement said they support the provision because it would stop 'confusing' state and local AI regulations. 'We cannot afford to wake up to a future where 50 different states have enacted 50 conflicting approaches to AI safety and security,' said Fred Humphries, corporate vice president of US government affairs for Microsoft Corp. White House tech adviser Michael Kratsios and AI czar David Sacks have publicly and privately praised the idea of a ban on state regulation. Kratsios at a Bloomberg event earlier this month said there are 'significant downsides' to a patchwork of state regulations and supports a national standard, which he added would benefit smaller tech companies in the market. A spokesperson for the White House Office of Science and Technology Policy said the office has 'not been involved' in conversations about the bill. The White House did not immediately respond to a request for comment. The struggle has highlighted internal Republican battle lines over how to handle the fast-moving technology backed by trillions of dollars in investments. Advertisement Hardline conservative critics, including the influential think tank Heritage Foundation, say the proposal would infringe on states' ability to protect their citizens against risks posed by AI. Officials in all 50 states, including some Republican attorneys general, and dozens of advocacy groups have also criticized the GOP effort. Senator Ed Markey of Massachusetts, a Democrat, said he plans to file an amendment to strip the moratorium out of the tax legislation. Republican opponents expect to join forces with Democrats to try to kill the measure. 'It's pretty clear that there's a bipartisan opposition,' Markey said. Conservative Republicans in the House also vowed to oppose the provision. But some supporters of the regulation ban still are optimistic it will remain in the tax package. 'I don't even think this is the top 10 most controversial things in the 'Big Beautiful Bill' politically,' said Neil Chilson, head of AI policy with the tech-backed Abundance Institute. 'There will be horse-trading. I think this has a real shot.' And the support of key Trump officials signals the path the administration is setting. Sacks, the White House AI and crypto czar, earlier this month said the moratorium is the 'correct small government position.' 'The America First position should be to support a moderate and innovation-friendly regulatory regime at the federal level, which will help rather than hobble the US in winning the AI race,' Sacks said in a post on X.
Time of India
30-05-2025
- Business
- Time of India
Mark Zuckerberg finally found a use for his Metaverse — War
I can't think of any other deal that more encapsulates how Silicon Valley has changed in the past couple of years than this one, announced Thursday in a press release: Anduril and Meta are partnering to design, build, and field a range of integrated XR products that provide warfighters with enhanced perception and enable intuitive control of autonomous platforms on the battlefield. For starters, Anduril Industries Inc. is a defense tech company co-founded by Palmer Luckey , the man who created the Oculus VR headset that was acquired by Meta Platforms Inc. for $2 billion in 2014, only for Luckey to be pushed out when it emerged he had financially backed a pro-Trump campaign group. That he would be welcomed back with open arms is yet another sign that such stances are no longer taboo in the halls of Silicon Valley companies. (It could be argued they never should have been.) Second, developing technology for war had been considered a hard red line for many of the engineers working within those leafy campuses, at least in the era after the dot-com boom. At Google, for instance, workers in 2018 held walkouts and forced executives to abandon projects related to military use. Today, defense applications of technology are something companies want to shout from their rooftops, not bury in the basement. (Again, it could be argued that should have always been the case. Who will create tech for the US military if not US tech companies?) In Meta's case, there's another factor at play. Mark Zuckerberg 's deal with Anduril — which you assume is just the start of Meta's military hardware ambitions — offers a lifeline to its ailing Reality Labs business. The unit has lost more than $70 billion since the start of 2019. Advancements in quality haven't led to jumps in sales. I've written before that fitness applications are a great selling point, but apparently too few people agree with me. A newer form factor, sunglasses made in partnership with Ray-Ban, have shown potential but still represent a niche product. Live Events So instead, maybe the 'killer app' for mixed reality is indeed a killer app. 'My mission has long been to turn warfighters into technomancers,' Luckey is quoted as saying in a press release. 'And the products we are building with Meta do just that.' Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories A prototype of the 'Eagle Eye' helmet being developed by the companies is due to be delivered to the Pentagon this year, Luckey told journalist Ashlee Vance in a podcast published alongside the official announcement. He compared its utility to what a player wears in the video game Halo — a heads-up display offering reams of intricate information on targets and locations, plus an AI assistant, Cortana, relaying critical and lifesaving directions. What's also striking about this shift is that it is a sign the historical flow of technological innovation is being turned around. Silicon Valley began as a region set up to develop chips for military tech before the assembled talent branched out into making products for businesses and consumers, such as the personal computer. Many breakthroughs have followed this direction of travel — the internet, the microwave, GPS, super glue, to name a few — but it is now increasingly the other way around. As Luckey put it during the podcast discussing the deal, it turns out that Meta's headsets are 'just as useful on the battlefield as they are on the head of any consumer.' See also: artificial intelligence, developed first (and perhaps, at the cutting edge, always) by private sector tech companies. The opportunity is too big to pass up and too lucrative to hold grudges. Luckey says he was willing to work with Meta again because it had become a much different place from the one he was booted out of. Now friends again, he said he believed that Zuckerberg received bad advice when told to fire him and that his coming round to more Republican ways of thinking is genuine — as evidenced by his willingness to make Meta's AI available for government use, too. I've little reason to question Luckey's judgment here, though I wonder if it might be time for Meta to revise its mission statement. 'Build the future of human connection,' it states today, not yet updated to reflect that it's now also working on the future of human conflict. This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Dave Lee is Bloomberg Opinion's US technology columnist. He was previously a correspondent for the Financial Times and BBC News.
Bloomberg
21-03-2025
- Business
- Bloomberg
Anduril Mulls UK Drone Factory in Push for European Defense Contracts
US defense technology company Anduril Industries Inc. is considering manufacturing drones in the UK and cutting deals with European arms makers to secure contracts as the continent prepares to boost defense spending. 'If we get enough orders, absolutely we are planning to open a facility in the UK,' Rich Drake, Anduril's general manager for UK and Europe, said in an interview. 'We are committed to being a sovereign UK business.'
Bloomberg
07-03-2025
- Business
- Bloomberg
Palantir Is Delivering AI-Laden Trucks to the Army
Palantir Technologies Inc. is delivering mobile battle stations to the US Army as part of its $178 million Titan contract — a milestone for the data analysis giant in its work with the military, and a signal of software's growing importance in modern warfare. The product, developed with subcontractors including Anduril Industries Inc. and Northrop Grumman Corp., looks from the outside like a rugged military truck. Inside, it has the feel of a work space, complete with flip-down desks, multiple screens and servers.
