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California governor rejects AI bill

California Governor Gavin Newsom has vetoed an AI bill that was meant to enshrine in law the country’s first-in-the-nation safety measures for large artificial intelligence (AI) models, leading to mixed reactions. Newsom told the audience during a Salesforce event that the state of California did need AI regulations but called out the danger of a “chilling effect” that could impact the industry. Several AI startups, tech giants, and some Democratic House members also opposed the new regulations.

However, the bill’s author, Democratic state Senator Scott Weiner, criticised the veto and said it hurt those who wanted the oversight of “massive corporations.” Newsom instead advocated for working with experts in the field in order to develop AI-related guardrails.

OpenAI eyeing $11.6 billion revenue

As OpenAI carries out its $6.5 billion fundraising round, Thrive Capital is investing more than $1 billion and could invest another $1 billion next year at the same valuation if OpenAI meets a revenue goal, reported Reuters, citing anonymous sources. In addition to this, OpenAI is predicting its revenue will reach $11.6 billion in 2025, while losses are expected to be as much as $5 billion this year, per the sources. An official confirmation or denial from OpenAI is pending.

However, the company behind the rapidly growing ChatGPT chatbot is seeing the departure of multiple senior executives, including Chief Technology Officer Mira Murati. OpenAI CEO Sam Altman has announced that he will be focusing on the technical and product-related aspects of the company, moving forward.

Cisco unveils India’s first manufacturing facility

Cisco inaugurated its first manufacturing facility in India on September 27, located in Sriperumbudur near Chennai, Tamil Nadu, to produce its Network Convergence System (NCS) 540 series of routers. The company did not reveal exactly how much it has invested in India, but aims to drive $1.3 billion in revenue and create 1,200 jobs in the state of Tamil Nadu.

Cisco CEO Chuck Robbins said that the company was highly rated for its sustainability, while his team said that it would continue to audit workers’ hours and ensure fair wages. The company also admitted that restructuring was taking place, and that it was shifting investments to focus especially on cybersecurity, artificial intelligence, and related areas in its business.