Artificial intelligence-related lobbying reached new heights in 2023, with more than 450 organizations participating. It marks a 185% increase from the year before, when just 158 organizations did so, according to federal lobbying disclosures analyzed by OpenSecrets on behalf of CNBC.
The spike in AI lobbying comes amid growing calls for AI regulation and the Biden administration’s push to begin codifying those rules. Companies that began lobbying in 2023 to have a say in how regulation might impact their businesses include TikTok owner ByteDance, Tesla, Spotify, Shopify, Pinterest, Samsung, Palantir, Nvidia, Dropbox, Instacart, DoorDash, Anthropic and OpenAI.
The hundreds of organizations that lobbied on AI last year ran the gamut from Big Tech and AI startups to pharmaceuticals, insurance, finance, academia, telecommunications and more. Until 2017, the number of organizations that reported AI lobbying stayed in the single digits, per the analysis, but the practice has grown slowly but surely in the years since, exploding in 2023.
More than 330 organizations that lobbied on AI last year had not done the same in 2022. The data showed a range of industries as new entrants to AI lobbying: Chip companies like AMD and TSMC, venture firms like Andreessen Horowitz, biopharmaceutical companies like AstraZeneca, conglomerates like Disney and AI training data companies like Appen.
Organizations that reported lobbying on AI issues last year also typically lobby the government on a range of other issues. In total, they reported spending a total of more than $957 million lobbying the federal government in 2023 on issues including, but not limited to, AI, according to OpenSecrets.
In October, President Biden issued an executive order on AI, the U.S. government’s first action of its kind, requiring new safety assessments, equity and civil rights guidance and research on AI’s impact on the labor market. The order tasked the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) to develop guidelines for evaluating certain AI models, including testing environments for them, and be partly in charge of developing “consensus-based standards” for AI.
After the executive order’s unveiling, a frenzy of lawmakers, industry groups, civil rights organizations, labor unions and others began digging into the 111-page document and making note of the priorities, specific deadlines and, in their eyes, the wide-ranging implications of the landmark action.
One core debate has centered on the question of AI fairness. Many civil society leaders told CNBC in November that the order does not go far enough to recognize and address real-world harms that stem from AI models — especially those affecting marginalized communities. But they said it’s a meaningful step along the path.
Since December, NIST has been collecting public comments from businesses and individuals about how best to shape these rules, with plans to end the public comment period after Friday, February 2. In its Request for Information, the Institute specifically asked responders to weigh in on developing responsible AI standards, AI red-teaming, managing the risks of generative AI and helping to reduce the risk of “synthetic content” (i.e., misinformation and deepfakes).
— CNBC’s Mary Catherine Wellons and Megan Cassella contributed reporting.
An Amazon worker moves boxes on Amazon Prime Day in the East Village of New York City, July 11, 2023.
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Amazon is extending its Prime Day discount bonanza, announcing that the annual sale will run four days this year.
The 96-hour event will start at 12:01 a.m. PT on July 8, and continue through July 11, Amazon said in a release.
For the first time, the company will roll out themed “deal drops” that change daily and are available “while supplies last.” Amazon has in recent years toyed with adding more limited-run and invite-only deals during Prime Day events to create a feeling of urgency or scarcity.
Amazon launched Prime Day in 2015 as a way to secure new members for its $139-a-year loyalty program, and to promote its own products and services while providing a sales boost in the middle of the year. In 2019, the company made Prime Day a 48-hour event, and it’s since added a second Prime Day-like event in the fall.
Prime Day is also a significant revenue driver for other retailers, which often host competing discount events.
Illustration of the SK Hynix company logo seen displayed on a smartphone screen.
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Shares in South Korea’s SK Hynix extended gains to hit a more than 2-decade high on Tuesday, following reports over the weekend that SK Group plans to build the country’s largest AI data center.
SK Hynix shares, which have surged almost 50% so far this year on the back of an AI boom, were up nearly 3%, following gains on Monday.
The company’s parent, SK Group, plans to build the AI data center in partnership with Amazon Web Services in Ulsan, according to domestic media. SK Telecom and SK Broadband are reportedly leading the initiative, with support from other affiliates, including SK Hynix.
SK Hynix is a leading supplier of dynamic random access memory or DRAM — a type of semiconductor memory found in PCs, workstations and servers that is used to store data and program code.
The company’s DRAM rival, Samsung, was also trading up 4% on Tuesday. However, it’s growth has fallen behind that of SK Hynix.
On Friday, Samsung Electronics’ market cap reportedly slid to a 9-year low of 345.1 trillion won ($252 billion) as the chipmaker struggles to capitalize on AI-led demand.
SK Hynix, on the other hand, has become a leader in high bandwidth memory — a type of DRAM used in artificial intelligence servers — supplying to clients such as AI behemoth Nvidia.
A report from Counterpoint Research in April said that SK Hynix had captured 70% of the HBM market by revenue share in the first quarter.
This HBM strength helped it overtake Samsung in the overall DRAM market for the first time ever, with a 36% global market share as compared to Samsung’s 34%.
OpenAI has been awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools.
The department announced the one-year contract on Monday, months after OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for “national security missions.”
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains,” the Defense Department said. It’s the first contract with OpenAI listed on the Department of Defense’s website.
Anduril received a $100 million defense contract in December. Weeks earlier, OpenAI rival Anthropic said it would work with Palantir and Amazon to supply its AI models to U.S. defense and intelligence agencies.
Sam Altman, OpenAI’s co-founder and CEO, said in a discussion with OpenAI board member and former National Security Agency leader Paul Nakasone at a Vanderbilt University event in April that “we have to and are proud to and really want to engage in national security areas.”
OpenAI did not immediately respond to a request for comment.
The Defense Department specified that the contract is with OpenAI Public Sector LLC, and that the work will mostly occur in the National Capital Region, which encompasses Washington, D.C., and several nearby counties in Maryland and Virginia.
Meanwhile, OpenAI is working to build additional computing power in the U.S. In January, Altman appeared alongside President Donald Trump at the White House to announce the $500 billion Stargate project to build AI infrastructure in the U.S.
The new contract will represent a small portion of revenue at OpenAI, which is generating over $10 billion in annualized sales. In March, the company announced a $40 billion financing round at a $300 billion valuation.
In April, Microsoft, which supplies cloud infrastructure to OpenAI, said the U.S. Defense Information Systems Agency has authorized the use of the Azure OpenAI service with secret classified information.