EXCLUSIVE: Gov. Kathy Hochul is proposing to strike the entire text of the RAISE Act, replacing it with verbatim language from SB 53, sources tell Transformer.
Fantastic reporting on the RAISE/SB53 swap. The knowledge distillation carveout is wild because it basically creates a regulatory arbitrage where companies can just use model distilation to sidestep the revenue threshold entirely. Seems like the $500m revenue bar versus $100m training compute criteria means startups burning cash on frontier models get a pass until they actually monetize, which feels backwards when the risk profile is about capability not profitibility.
Fantastic reporting on the RAISE/SB53 swap. The knowledge distillation carveout is wild because it basically creates a regulatory arbitrage where companies can just use model distilation to sidestep the revenue threshold entirely. Seems like the $500m revenue bar versus $100m training compute criteria means startups burning cash on frontier models get a pass until they actually monetize, which feels backwards when the risk profile is about capability not profitibility.