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Politico
a day ago
- Business
- Politico
Where Silicon Valley is putting its money in the governor's race
Hello California Playbook readers! We're excited to bring you a special excerpt today of our daily newsletter POLITICO Pro Technology: California Decoded, featuring our tech team's scoopy coverage of the governor's race. If you like what you read, you can request a demo here. VIBE CHECK — Silicon Valley is barely dipping its toes into the California governor's race. But a surprising candidate has attracted the most donor dollars from tech figures and companies at this early stage. We're talking about former Rep. Katie Porter, according to a Decoded analysis of the latest gubernatorial campaign disclosures. Yes, the same Porter whose whiteboard-wielding takedowns made her a scourge of corporate boardrooms and the target of a last-minute $10 million blitz from the crypto lobby that torpedoed her last run. Porter has since won back at least one prominent crypto executive — Ripple co-founder Chris Larsen, who maxed out with a $39,200 check in June after she showed a 'willingness to learn and engage' in recent conversations, he told California Playbook at the time. Last week, she received another $39,200 from Larsen's wife, San Francisco philanthropist Lyna Lam, just one day after former Vice President Kamala Harris decided against a gubernatorial bid of her own. The same day, Porter scooped up $20,000 from Marco Zappacosta, the CEO of S.F.-based home services platform Thumbtack, and $5,000 from Kim Rubey, Airbnb's former head of global philanthropy. Her campaign enjoyed a broader boost as well, taking in $250,000 within 36 hours of Harris' announcement. Her past larger checks include $39,200 from AI company founder Donna Bower; $39,200 from medtech executive Joe Kiani; $5,000 from tech consultancy CEO Judith Estrin; and $5,000 from Brian Fargo, the CEO of a video game developer. Still, taken altogether, tech sources represented but a small fraction of her total fundraising, as is the case across the entire field so far. That's because many of those employers have held back for now. One notable exception was Google, which gave Lt. Gov. Eleni Kounalakis $5,000 in June and $3,500 last year. Kounalakis last week dropped her bid for governor and switched to campaigning for treasurer instead. Airbnb wants to play a bigger role come 2026, including for the governor's race. This summer, the company dropped $350,000 to strengthen its relationship with the California Democratic Party and loaded $15 million into a PAC for state and local contests. 'Airbnb is just getting started in California,' its senior manager of public policy, Justin Wesson, said in a statement. 'We look forward to making significant contributions to candidates who empower residents with the ability to share their home, champion communities and small businesses that rely on short-term rentals, and promote tourism in the Golden State.' It has yet to pick which gubernatorial candidate fits that profile, though Airbnb's chief legal officer, Democratic strategist Ron Klain, has already gotten behind fellow Biden alum Xavier Becerra. Klain and others, including Stephanie Peters, a House committee lawyer who was Microsoft's longtime senior director of congressional affairs, are hosting a fundraiser for Becerra in Washington next month. Tickets range from $250 to $2,500, as Decoded reported last week. Becerra has captured enough tech-related donations to rank third in our analysis. But the former health secretary's most significant gifts from Silicon Valley figures and industry groups were brought over from his old congressional committee. For Porter, one tougher feat may be getting crypto platform Coinbase on her side. Another gubernatorial hopeful, the former LA Mayor Antonio Villaraigosa, sits on the firm's global advisory council and earned second place in our analysis. Villaraigosa has secured $18,200 apiece from the co-founders of wireless provider TruConnect — Matthew Horton Johnson and Nathan Johnson — plus smaller checks like $200 from Petersen, $500 from a Comcast manager and $100 from the man who turned 'smart cities' into a slogan, former Beverly Hills Mayor Jimmy Delshad. He took a larger cut from tech unions. A PAC for the California-Nevada Conference of Operating Engineers donated $39,200, while the San Francisco and LA chapters of the International Union of Operating Engineers contributed $10,000 and $5,900, respectively. Tech hardly showed up in not only the filings for Democratic challengers — Tony Thurmond, Toni Atkins and Betty Yee — but also Republicans Chad Bianco and Steve Hilton. Those traces were nearly all from employees. They consisted of $100 from an AT&T manager to Thurmond; $300 from a Blue Sky engineer and $200 from Googlers to Atkins; $1,000 from a Synopsys engineer, as well as under $400 from Amazon staff to Bianco. GOOD MORNING. Happy Monday. Thanks for waking up with Playbook. Like what you're reading? Sign up to get California Playbook in your inbox, and forward it to a friend. You can also text us at 916-562-0685 — save it as 'CA Playbook' in your contacts. Or drop us a line at dgardiner@ and bjones@ or on X — @DustinGardiner and @jonesblakej. WHERE'S GAVIN? Nothing official announced. BIG NEWS: On Wednesday, Aug. 27, POLITICO is hosting its inaugural California policy summit. At The California Agenda, some of the state's most prominent political figures including Sen. Alex Padilla, Katie Porter and Xavier Becerra will share the stage with influential voices in tech, energy, housing and other areas to chart the path forward for a state at the forefront of critical policy debates. The live and streamed event is free, but advanced registration is required. Request an invite here. STATE CAPITOL HARASSMENT ACCUSATIONS — Cynthia Moreno, former press secretary for Assembly Speaker Robert Rivas, was fired last week over sexual harassment allegations. The Assembly Rules Committee on Friday evening disclosed it had terminated Moreno on Aug. 6 after a Workplace Conduct Unit investigation found she 'repeatedly made inappropriate comments of a sexual nature … to various employees,' according to a letter from Chief Administrative Officer Lia Lopez. The letter, which was redacted in certain places, said the committee fired Moreno due to the 'serious nature' of legislative and Assembly policy violations, her 'lack of candor during the investigation' and her 'high-visibility position' in the speaker's office. Moreno denied the allegations. In a statement released late Friday, she said a process she 'truly believed to be just, legal, unbiased and transparent turned out to be the exact opposite.' 'But, more alarming is how easy it can be for a few individuals to come together and make blatant and false accusations against me in an attempt to cause harm and slander my name,' she said. Asked about Moreno's termination, Rivas' team shared a statement from general counsel Emelyn Rodriguez declining to comment on 'confidential personnel matters' and saying the office has 'recused itself from the disciplinary action taken in this case.' — Lindsey Holden CAMPAIGN YEAR(S) FIRST IN PLAYBOOK: THURMOND PUNCHES — Superintendent of Public Instruction Tony Thurmond is deploying a new tactic as he attempts to gain traction in the crowded governor's race: unleash on Rick Caruso, the billionaire mall magnate who's weighing a run. Thurmond, who has lagged in recent polling, will release a digital ad today that criticizes Caruso, over his past Republican allegiance (he's now a Democrat) and his inherited wealth. The ad, which his team shared with Playbook early, also challenges Caruso to debate Thurmond. 'So right about now, Rick Caruso is doing what he has done every four years for the last 20 years, hemming and hawing about whether or not he wants to run for office,' Thurmond says in the spot, which will target primary voters in the Los Angeles area. HITTING THE ROAD — Candidate for governor Toni Atkins opened her San Diego headquarters Saturday with a demonstration of her political clout in the state's second-largest city and an announcement that she will be launching a statewide tour. Among those attending the HQ opening were Rep. Scott Peters; state Sen. Steve Padilla; Assemblymember Chris Ward; San Diego Mayor Todd Gloria and newly elected County Supervisor Paloma Aguirre. Also on hand were Jesse Garcia of the Western States Regional Council of Carpenters; Erica Pinto of the Jamul Indian Village Tribal Council; Cori Schumacher of IBEW 569. In attendance, but not speaking, were San Diego County Sheriff Kelly Martinez and District Attorney Summer Stephan. Atkins obviously has deep roots in her hometown and will be looking to expand her appeal with the statewide tour that starts in Red Bluff on Aug. 20. — Ben Fox CLIMATE AND ENERGY TAKE IT TO HART — Assemblymember Gregg Hart isn't shying away from California's thorniest climate fights. The Santa Barbara Democrat is jumping into the debate over gas prices, arguing that new drilling in oil-rich Kern County needs to be on the table, while pushing back on efforts to increase production in his coastal district. Read more in Friday's edition of California Climate. TOP TALKERS BATTLE FOR LOS ANGELES — As LA grapples with its post-fire recovery and pre-Olympic planning, business and labor unions have given up on working through City Hall — and are preparing for total war over competing ballot measures. Mayor Karen Bass is attempting to deescalate the situation ahead of her reelection fight next year, as POLITICO's Emily Schultheis reports. 'This moment shows us how broken our policymaking process has become,' said Katy Yaroslavsky, a Democratic member of the LA city council. 'When we have two of the most powerful political forces in our city feeling like their only option is to go to war at the ballot box, that's not a sign that things are working as they should.' UCLA'S DEFENDER — Gov. Gavin Newsom on Friday blasted Trump's demand for $1 billion from UCLA over antisemitism allegations in return for millions of dollars in frozen federal research grants, describing the president's move as an attempt to 'silence academic freedom,' as POLITICO's Juliann Ventura reports. 'He has threatened us through extortion with a billion-dollar fine unless we do his bidding,' Newsom said at a news conference, vowing to push back against the move as UCLA risks losing more than half a billion dollars in federal research funds. WON'T BACK DOWN — Texas Democrats who appeared in California alongside Newsom on Friday vowed to press forward with their quorum-breaking effort to counter a Republican-led redistricting in Texas, as the war over redistricting escalates. As POLITICO's Jeremy B. White and Lindsey Holden report, Newsom is pushing the Democratic-controlled Legislature to trigger a November special election, laying the groundwork for a campaign by circulating polling, as mapmakers hammer out a blueprint to eliminate a half-dozen of California's remaining House Republicans. Rep. Zoe Lofgren said that every California House Democrat supports the plan. AROUND THE STATE — Despite Trump's attention to ICE raids in California, the state lags behind red Texas and Florida in total immigration-related arrests. (Los Angeles Times) — Immigrant hubs in the suburbs of Los Angeles county, including restaurants, small businesses, churches and other cultural hubs, have emptied out in the wake of recent ICE raids. (The Orange County Register) — A 30-year highway expansion project to ease traffic from San Francisco to San Rafael and into wine country is nearly complete. (San Francisco Chronicle) — Soaring health-care costs are driving up California's massive unfunded liability for the retirement costs of state workers. (The Sacramento Bee) PLAYBOOKERS BIRTHDAYS — Kent Kauss at Sempra Energy … Jena Jensen at the Children's Hospital of Orange County … Todd Roberson at the California Dental Association … podcaster Joe Rogan … Yelena Shuster ... BELATED B-DAY WISHES — (was Sunday): Assemblymember Buffy Wicks … Clarissa Rojas of Pinterest … Kevin McAlister … former state Sen. Steven Glazer ... Jeremy Ring … Larry Remer at the Primacy Group … Cameron Onumah at Amazon … (was Saturday): Oracle's Joel Hinzman … Jake Elitzer … state Sen. Brian Jones (favorite cake: German chocolate) … retired educator Tamara Rae Griffith … (was Friday): San Francisco cafe owner Manny Yekutiel ... Dustin Hoffman WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO's California Playbook. You can now submit a shout-out using this Google form.
Politico
14-03-2025
- Business
- Politico
Scoop: Meet California's next top privacy boss
We hope you've enjoyed the preview of our new daily newsletter POLITICO Pro Technology: California Decoded. Today is the last day, so make sure you subscribe here to continue receiving California Decoded in your inbox. California Playbook PM will return on Monday, March 17. QUICK FIX — We've got the scoop on the new CPPA boss. — A new tech watchdog faces an uphill battle in Sacramento. — Major online safety bill suffers setback in court. Welcome to California Decoded! Thanks for starting your (almost) weekend with us. Send feedback, tips and story ideas to tkatzenberger@ and chasedf@ Driving the day FIRST IN DECODED: CPPA PICKS NEW BOSS: California's Privacy Protection Agency has named Tom Kemp as its next executive director, California Decoded can exclusively report today, putting the tech entrepreneur at the helm of the nation's only dedicated privacy rights enforcement agency. Kemp, formerly CEO of cybersecurity company Centrify and a longtime policy adviser to lawmakers pushing state-level privacy laws, will be the CPPA's second-ever leader after Ashkan Soltani departed as director in January. Kemp assumes control of a fledgling agency, created in 2020, seeking to flex its oversight authority by investigating companies and data brokers accused of violating privacy laws. He'll begin his role on April 1, just three days before the agency's five-member board meets to discuss potentially sweeping new rules for automated decision-making that have attracted strong backlash from Big Tech. 'The regulations, that's the control of the board,' Kemp told us in an interview. 'I'm going to walk in there with an open mind and listen.' Kemp is no stranger to California politics. He said he led campaign marketing for Proposition 24, the 2020 privacy rights ballot measure that created the CPPA. He's since advised state lawmakers on AI and data privacy legislation, including state Sen. Josh Becker's 2023 Delete Act and a 2024 bill that imposed labeling requirements on some AI-generated content. However, his past investment in data privacy and AI startups could become a line of attack for business and tech industry groups skeptical of the CPPA's work. Trade group Consumer Data Industry Association has argued Kemp's investments in Atlas Data Privacy — a company that provides data deletion services similar to what's mandated in Becker's Delete Act — are a potential conflict of interest. Kemp told us he will 'adhere to all regulations and requirements' for senior-level state employees from California's Fair Political Practices Commission. CPPA spokesperson Megan White added that Kemp 'previously had a small investment' in Atlas but divested it last year and has 'no current involvement in the company.' He also previously authored the book 'Containing Big Tech,' which proposed a roadmap for regulating online surveillance, AI and tech monopolies. California Decoded sat down with Kemp to ask about his plans for the CPPA. This interview has been edited for length and clarity. Why did you decide to pursue this position? It kind of ties in with the concerns that you raised in [yesterday's newsletter on location data]. And the reality is, even before the concerns involving the Trump administration, that studies such as a recent Pew Research [survey] have found people are concerned … about the overuse, misuse of personal information. I'm very familiar with the fact that California has the only dedicated privacy agency in the United States. And so when I heard about this — I obviously interfaced with the agency in the past — I was just very excited about the opportunity to promote the education and awareness of privacy to consumers, to help businesses maintain their responsibilities under the California Consumer Privacy Act [which established the agency]. CPPA board members have said during meetings that the agency needs more staff to aid its enforcement work. How do you plan to address this need? By statute, it originally started at $10 million upon its passage. The latest budget is in the $12.3 million area. So there is a limitation on what we can do as an agency. To be candid, I haven't started yet. When I do start, that is something that I sit down with staff members and board members to make sure … we [are] maximizing and leveraging the resources that we have. How do you envision the CPPA interfacing with the Legislature during your tenure? We certainly want to be very conscious and cognizant that we're listening to key stakeholders, like legislators. The good news is that I have worked over the last few years with privacy leaders like Senator Becker. I've testified a number of times in the past on behalf of some of Senator Becker's bills. The Legislature is one of the key stakeholders, and it's been built into the law that we need to provide advice based on their request. We will fulfill that. What is the biggest threat to Californians' privacy rights right now? There is a concern out there, based on Pew Research and other studies, that people are very concerned about intrusions on their privacy, but not as many people have been exercising their privacy. One of the goals of the CPPA is to continue to raise awareness with Californians about their ability to exercise their privacy rights. And so that is something that we're going to continue to build upon. How will you interface with business groups and tech industry groups that have been skeptical of the agency's rulemaking? I think the thing that I can bring is the fact that I've been in business. I've created jobs. I was even a member of the Silicon Valley Leadership Group board for five years, and a member of the executive board for one year … I'm an embodiment of the balancing of innovation and of strong privacy. On The Airwaves A FACE FOR TV — California Decoded editor Emma Anderson breaks down how Elon Musk is bringing a fast moving, and sometimes chaotic, Silicon Valley approach to D.C., in an interview with CBS News' America Decides, discussing the intersection of tech and policy. HAPPENING TODAY ALL DAY — The AI Developer Conference is today in San Francisco's Ferry Building. Influence and Industry FIRST IN DECODED: GOING BICOASTAL — With Big Tech pouring legal and lobbying dollars into Sacramento, a relatively upstart outfit with the mission of pushing back against industry titans called Tech Oversight Project told California Decoded it will launch its first state legislative branch in California. The two-year-old nonprofit from D.C. will launch Tech Oversight California with the goal of taking the fight to tech companies on issues from kids' safety online to antitrust, comms director Marjorie Connolly told Decoded. She said starting its first state branch in California would help groups working on more muscular tech regulation 'be aggressive and seize this moment and secure real progress and real legislative change in California that can be a model to others around the country and around the world.' The group faces something of an uphill battle. Moneyed tech interests have brought a series of challenges recently to tech-unfriendly bills on kids' online safety (more on that below). Connolly acknowledged as much, calling the fight against Big Tech a 'David and Goliath situation.' 'The fact that we're going to have one or two people in California that are going to be bulldogs for the people against Big Tech in the press is great,' Connolly said. 'They've got hundreds and hundreds and hundreds of people,' she added of tech lobbying, but she said public opinion was on their side. Tech Oversight also has some fundraising to do, reporting less than $1 million in revenue in 2023, the most recent data available. The group telegraphed its priorities early, already throwing its weight behind California bills including state Sen. Steve Padilla's legislation protecting children from some AI chatbots; Assembly Majority Leader Cecilia Aguiar-Curry's proposal to clamp down on price-fixing algorithms; and Assemblymember Christopher Ward's effort to stop businesses from basing prices on collected data. Nichole Rocha, former chief consultant to the Assembly Privacy and Consumer Protection Committee, will take the helm as the group's policy adviser. Kevin Liao, who previously worked as ex-Assembly Speaker Anthony Rendon's press secretary, will be communications adviser. In the Courts BLOCKED AND TACKLED — In a win for Big Tech in California, Assemblymember Buffy Wicks' Age Appropriate Design Code suffered a significant setback in a federal courtroom Thursday. U.S. District Judge Beth Freeman ordered that California cannot enforce any portion of the law, which requires social media sites to determine users' ages and limit data sharing and ad targeting for young people, pending a final ruling on the measure which was signed into law in 2022. Wicks promised to fight on despite the setback. 'Every parent in America understands that Big Tech is hurting our children, and it's infuriating that these companies continue to shirk responsibility for protecting them on even the most basic level,' she said in a statement to Decoded. 'The ruling [Thursday] is a deeply disappointing setback for our kids' safety, and a blow to every parent raising a child in 2025. But the fight isn't over, and I'm digging in my heels. I will keep pushing for basic online protections until our kids are safe,' she added. Social media FIRST IN POLITICO: TURN BACK THE CLOCK — Assemblymember Josh Lowenthal is adding the teeth back into his latest push to penalize social media companies for harming young users, likely setting up another showdown between the tech industry and online safety advocates. As we first reported for POLITICO Pro subscribers yesterday, new amendments to Lowenthal's AB 2 are nearly identical to his bill that passed the Assembly last year before being watered down in Senate Appropriations and ultimately getting pulled from the committee by Lowenthal himself. The new bill once again threatens fines of up to $1 million per child on social media companies whose products are found to cause harm through negligent practices. AB 2 sets up a rematch between lawmakers and tech giants like Meta that promises to reveal whether Sacramento Democrats can rally enough support to push social media regulations over the finish line after struggling to do so in recent years. Lowenthal said he's expecting 'massive amounts of enthusiasm' for his new bill after 'hearing across-the-board positive thoughts' about his original proposal from Republican and Democratic leaders in the Legislature. 'The paradigm that we're operating in is completely different,' the Long Beach Democrat said in an interview, citing what he called an 'unhealthy relationship' between Big Tech companies and President Donald Trump. Byte Sized — Trae Stephens, who has ties to Peter Thiel, is pitching a Christian-guided vision for the tech industry (Wired) — The Internal Revenue Service is reevaluating its approach to modernizing technology as AI continues to advance (Reuters) — AirPods may soon be able to live-translate in-person conversations, but competing earbuds have offered this feature for years (Bloomberg) Compiled by Nicole Norman Have a tip, event or new wiz-bang gizmo to share? Do reach out: Emma Anderson, California tech editor; Chase DiFeliciantonio, AI and automation reporter; and Tyler Katzenberger, Sacramento tech reporter.
Politico
13-03-2025
- Politics
- Politico
California doesn't want ICE to know your location
We hope you've been enjoying the preview of our new daily newsletter POLITICO Pro Technology: California Decoded. The preview ends on Friday, so make sure you subscribe here to continue receiving California Decoded in your inbox. California Playbook PM will return on Monday, March 17. QUICK FIX — Sacramento Democrats latch onto privacy rules as another Trump resistance tactic. — The kids' safety debate plays out in court — and exposes a fissure within Big Tech. Welcome to California Decoded! We've made it to Friday junior. Send feedback, tips and story ideas to tkatzenberger@ and chasedf@ Driving the day ANALYSIS: THE GREAT FIREWALL — California Democrats have a new approach to resisting President Donald Trump's immigration crackdown, beyond sanctuary cities and thwarting ICE raids: data protection. State lawmakers' fear, shared by civil liberties groups, is that the Trump administration could leverage massive caches of location data and other online personal information gathered by advertisers, mobile apps and data brokers to aid mass deportations or target people seeking gender-affirming care. They've authored a slate of bills this session to bolster the Golden State's already robust privacy laws, hoping to keep Trump at bay and closing any loopholes that could let sensitive information fall into his administration's hands. 'We've seen how location and digital data can be weaponized to target immigrant communities, protesters, and others whose identities or actions run counter to certain political agendas,' Assemblymember Chris Ward, a San Diego Democrat, told California Decoded in a statement. California Attorney General Rob Bonta — who has emerged as a major player across blue states' Trump resistance — just this week announced his office is investigating businesses that appear to be breaking California's rules for protecting location data, citing concerns about federal immigration policies. 'This location data is deeply personal,' Bonta said in a statement Monday. 'Given the federal assaults on immigrant communities, as well as gender-affirming healthcare and abortion, businesses must take the responsibility to protect location data seriously.' California immigrant rights groups have expressed similar concerns that data brokers sell personal information to Immigration and Customs Enforcement without asking for user consent, citing past reports that ICE has extensive purchasing contracts with data analytics firms like LexisNexis and Thomson Reuters. 'It really does seem like looking at technology and the use of information has been this sort of second frontier in terms of immigration enforcement,' said Shiu-Ming Cheer, deputy director of immigrant and racial justice at the California Immigrant Policy Center. ICE earlier this week made its first arrest in a wider investigation aimed at identifying and deporting foreign students who appear to be 'pro-Hamas' — an effort the State Department has said will involve tracing attendance at anti-war protests, like the ones across California campuses. (ICE did not respond to requests for comment. A State Department spokesperson said they use all available technology in visa screening and vetting.) 'It's really easy to see how all-powerful tech tools and data collection by private businesses could be weaponized by a government who is willing to go that far in targeting American citizens,' Jonathan Mehta Stein, executive director of democracy watchdog nonprofit California Common Cause, said in an interview. However, most people don't realize their devices and apps are sharing information about their precise location with third parties, state Sen. Josh Becker told Decoded. 'They're establishing a vast … surveillance network,' Becker, a forceful advocate for data privacy in the Legislature, said of the Trump administration. 'Certainly I think they're looking at all kinds of data sources. Data brokers could be one of them, and it's a source that people don't know.' The Menlo Park Democrat is carrying a bill this year, SB 361, that would require data brokers to publicly disclose whether they collect and sell sensitive information like immigration status, sexual orientation, union membership and government ID numbers. Becker has previously said his measure was 'especially necessary now as we see the reality of mass deportations of immigrants and the targeting of the transgender community.' Another bill by Ward, AB 1355, would outright prohibit companies from selling location information to any third party, including federal agencies. Ward in a statement told Decoded that Trump's deportation plans 'were not the primary reason for introducing' his bill but added that 'location data should never be sold to the highest bidder, especially when it can be used to surveil, intimidate, or punish people.' Stein called Ward's measure 'a really powerful solution' for protecting data from government overreach. Meanwhile, Assemblymember Rebecca Bauer-Kahan is still finalizing a placeholder bill, AB 45, that promises to beef up privacy protections for patients seeking an abortion. Her measure includes a ban on 'geofencing,' a device location tracking technology used by some data brokers that can identify when people enter and exit abortion clinics. Bauer-Kahan didn't respond to a request for comment. She told POLITICO late last year that California needed more privacy safeguards for abortion patients in case Trump or Republicans in Congress passed laws restricting interstate abortion access. In the Courts CONTENT MODERATION — Judge Edward J. Davila for the U.S. District Court of Northern California just heard arguments today in NetChoice v. Bonta, a case brought by the tech industry group against a California law meant to offer parents more control over 'addictive' social media content. Davila already paused the law from taking effect back in January but said NetChoice failed to show the entire law violates the First Amendment. His ruling will determine if the District Court continues proceedings in the case or waits for the Ninth Circuit Court of Appeals to make a final decision on whether other portions of the law infringe on free speech rights. Artificial Intelligence WHAT'S MY AGE AGAIN — It's not unusual for Big Tech to take shots at bills it doesn't like. What's less common is for Big Tech to take shots at well, Big Tech, over a piece of legislation. That is about the size of a shot Google fired at rival Meta on Wednesday over an age verification bill backed by the social media company in Utah, of all places, that would require an app store to tell app developers if a user is a child or a teenager. It's the latest front in a national battle to decide how to keep kids safe online — including in the case heard today in court over California's law against 'addictive' feeds authored by former state Sen. Nancy Skinner. Assemblymember Buffy Wicks is similarly awaiting the legal fate of her 2022 Age Appropriate Design Code, which largely prohibits apps and sites likely to be accessed by children from targeting and tracking young people for commercial purposes, and limits the sharing of their data, among other provisions. The Google-Meta spat shows the political fault lines are not just between companies and legislators, but also among the companies themselves and their differing profit motives, when it comes to the ongoing debate about how kids should be protected online. 'This level of data sharing isn't necessary — a weather app doesn't need to know if a user is a kid,' the post from Google's Director of Public Policy Kareem Ghanem said, brushing off the Utah proposal. Instead, he proposed a legal framework where data is only shared with consent, not by default. Google runs the Android app store, so data sharing issues aside, it's not surprising the search giant wants to avoid having to handle that kind of sensitive information and the risks that come with it. Meta has no app store to speak of, and is concerned with selling laser-targeted ads as well as skirting around sticky issues of online age verification. 'Parents across the country are calling for app stores to do more to keep children safe online, and fourteen US states and federal lawmakers have introduced legislation that responds to their concerns,' Meta spokesperson Stephanie Otway said in a statement to California Decoded. The company has also rolled out Instagram teen accounts with more default privacy settings, and would rather parents be in control of their kids' social media use. Laws in Florida, Texas, and elsewhere also give parents control over how and how much their children use social media. Otway painted Google's statement as an admission that the company can indeed share age data with app developers, adding: 'The simplest way to protect teens online is to put parents in charge. That's why legislation should require app stores to obtain parental consent before allowing children to download apps.' But splits in the tech family are often an exception, not a rule. Tech industry group NetChoice, which counts Google and Meta as members, is the one that sued over Wicks' Age Appropriate Design Code. A federal appeals court partially blocked that law while allowing some of its provisions to take effect, and the case is ongoing. NetChoice is also the tech industry's chosen champion for the case that was heard in federal court today, challenging the Skinner law that outlaws providing addictive social media feeds to kids in California. Byte Sized — Intel surges nearly 15 percent after appointing chip industry veteran Lip-Bu Tan as CEO (Reuters) — Meta plans to use X's technology to test community notes on Instagram and Facebook in the U.S. starting next week (NBC) — OpenAI alleges Chinese competitor DeepSeek is 'state-controlled' (TechCrunch) Have a tip, event or quality social media rant to share?? Do reach out: Emma Anderson, California tech editor; Chase DiFeliciantonio, AI and automation reporter; and Tyler Katzenberger, Sacramento tech reporter.
Politico
03-03-2025
- Automotive
- Politico
Digital Future Daily Special Edition: Introducing ‘California Decoded'
Presented by Hello Digital Future Daily readers! Below is the very first edition of POLITICO Pro Technology: California Decoded from our colleagues on the West Coast. We thought you would enjoy a one-day preview of their new daily newsletter. If you like what you read, you can subscribe here. QUICK FIX — The lawmaker spearheading a major AI safety effort tells us why he's feeling confident this year. — Exclusive interview with California AG Rob Bonta reveals his thinking on Trump's tech crusade. — What a major tech lobby group is eyeing in Sacramento this year. Hello and welcome to the first edition of California Decoded, the flagship daily newsletter from POLITICO's brand-new California tech team. I'm Chase DiFeliciantonio, your anchor for today, bringing you the latest from the AI and automation beat, which will be my main focus. My partner Tyler Katzenberger will be bringing you all things tech policy, from social media to privacy debates. We'll announce the final member of our team, who will cover Silicon Valley politics, tomorrow. Glad you're with us. Send feedback, tips and story ideas to chasedf@ and tkatzenberger@ Driving the day ANALYSIS: AI SAFETY IS BACK — A marquee AI safety bill loathed by Big Tech, lauded by Elon Musk and slammed by leading congressional Democrats including Rep. Nancy Pelosi is back in Sacramento. The measure from state Sen. Scott Wiener is one to watch not just because of the controversy it generated last time around, but also for what its slimmed-down look says about who gets to regulate AI in the Golden State, and beyond. Wiener, a San Francisco Democrat widely believed to have his eye on Pelosi's seat when she retires, relaunched the bill Friday after the failure of the notorious, at least in tech circles, measure known as SB 1047 last year. But the battle lines have been redrawn with the retooled proposal, which for now is a far cry from the sweeping effort that generated headlines and a Big Tech backlash. If Wiener wants to succeed this time, he will have to avoid a veto from Gov. Gavin Newsom, which felled his previous measure, and placate a governor who has shown little appetite for regulatory broadsides against one of California's most-profitable industries. He will also have to convince and cajole Big Tech players like Meta to OpenAI to hold their fire, something he tried mightily — and ultimately failed to do — before. Wiener appears to be taking a page out of the tech playbook of failing fast, resurrecting two key ideas from last year in the new bill to expand whistleblower protections for AI workers and to build out public computing resources for AI research. 'I would be very surprised if the bill drew meaningful opposition from tech,' Wiener told California Decoded on Friday after the bill language was first released. 'But I've been surprised before.' His revamped approach says plenty about who will be holding the reins in the effort to prevent runaway AI programs from using too much electricity or, as the naysayers fear, killing us all. Here's a look at the key players Wiener faces with his latest effort on AI: Musk: A long-time AI doomer, Musk somewhat grudgingly supported Wiener's prior bill focused on pre-release testing of AI models in a surprise post last year. He did not put muscle or money behind his position, however. And with the new bill focused on making it easier for AI developers to sound the alarm from within their companies, it's difficult to see Musk — who has shown himself to be no fan of whistleblowing and press leaks at Tesla — coming down on Wiener's side again. Newsom: The California governor not only vetoed Wiener's SB 1047, but also charted an alternative path by appointing a who's who of AI and legal experts to produce a report on how to best handle the safety risks posed by the technology. That writeup is expected imminently, within this first quarter of 2025. Wiener told California Decoded he hasn't been privy to the group's work, but is open to expanding his bill to include the panel's recommendations. That puts him more in the waiting room than the driver's seat with a smaller and more-focused measure potentially awaiting the input of Great Minds like Stanford's Fei-Fei Li, whose oft-repeated moniker, The Godmother of AI, carries weight. Democrats in Congress: Although Pelosi came out against Wiener's prior proposal, whether she supports the slimmed-down version, or takes notice at all, remains to be seen. That intra-party scuffle was back when President Joe Biden was leading the White House instead of Musk — I mean, President Donald Trump. Under Biden, executive actions and Kumbaya international AI safety meetings were the order of the day. With Democrats firmly out of power in Washington, those in the party might be more inclined to notch wins on a key tech policy issue wherever else they can find them. Big Tech: Last year, AI model makers OpenAI and Meta opposed Wiener's more-sweeping measure, which drew some tepid support from Anthropic, the San Francisco maker of the Claude chatbot. Wiener is betting the new bill will draw less wrath from tech companies by focusing on whistleblower protections instead of the expansive vetting regime of the previous bill. It's too early to know whether that happens, but we figured we'd ask anyway. Anthropic declined to comment to California Decoded when asked about the bill, and OpenAI did not respond to questions. A representative for the San Francisco startup incubator Y Combinator, which opposed the previous version of the bill, similarly could not be reached for comment. Among the Big Tech players last year, Meta strenuously opposed the bill, saying its testing rules created too much liability for startups using its free AI programs and hosting events to whip up opposition among Bay Area tech types. Meta spokesperson Jamie Radice told California Decoded that the company is reviewing the legislation. It's not uncommon for industry to take their time reading through the legalese of a new bill before taking a side — or not. Wiener said stripping out the testing provisions should allay much of the opposition. But replacing them with whistleblower protections is not a total olive branch in a tech industry where leaks can be tantamount to corporate treason that can cost significant cash and reputation loss. None of the companies contacted by California Decoded gave a flat 'no,' however, meaning tech still could come into the fold this time. HAPPENING TODAY 3:30 p.m. PT — The California Assembly's Banking and Finance Committee will meet, including to hear testimony on Republican Assemblymember Phillip Chen's bill aimed at saving cryptocurrency traders thousands of dollars on state-imposed licensing costs. In the Courts EXCLUSIVE: BONTA'S TECH PLAYBOOK — California Attorney General Rob Bonta isn't losing sleep over Trump and Big Tech's crusade against strict AI rules and data privacy protections, he told California Decoded in an exclusive, in-person interview today just hours before our launch. It comes as Trump wages a pressure campaign against tech rules in Europe, whose approach often inspires California legislation. 'We expect that maybe Trump will want to sue. Maybe he won't. No idea,' he told us when asked whether the president might expand his pressure campaign to California. 'We'll take him to court ... and as we usually do, we presume we have a high likelihood of success.' The Trump administration has threatened tariffs in response to European taxes and fines on U.S. tech firms, with FCC boss Brendan Carr today lashing out at what he called Europe's social media 'censorship.' Heard that line before? Us too. Tech industry groups — including Musk's X — have filed a string of lawsuits arguing California's social media and AI deepfake regulations violate the First Amendment. Trump hasn't implicated California, but both he and Musk have regularly made the state's left-leaning policies a political punching bag. Bonta told us his office isn't waiting for Trump to pull the trigger. 'The laws that we engage on — either we sponsor or that we provide technical assistance on — we're doing deeper dives on all of those,' he said. 'We know the playbook.' Influence & Industry GOLD RUSH — The liberal, pro-tech interest group Chamber of Progress is watching Golden State lawmakers like a hawk this year after opposing some of the state's most ambitious efforts to regulate social media and AI regulations last year. CEO Adam Kovacevich shared a rundown today of the group's top legislative fights in statehouses, and Sacramento features prominently. Atop the watchlist are proposals to mandate warning labels on social media platforms, including Assemblymember Rebecca Bauer-Kahan's AB 56, which would force platforms to display unskippable, 90-second health warnings to users at least once per day. Bauer-Kahan also made the Chamber's shortlist for her first-in-the-nation bid to stop tech companies from undercutting Hollywood creatives by using copyrighted works to train AI models without prior consent. Kovacevich said the Chamber of Progress is monitoring scaled-back versions of legislation that failed last session, including Wiener's revived AI safety effort and Assemblymember Cecilia Aguiar-Curry's third try at sticking human safety operators behind the wheel of some autonomous delivery vehicles. Byte Sized — Apple is reportedly struggling to keep up in the AI race, despite a partnership with OpenAI (Bloomberg) — Anthropic is now valued at $61.5 billion (CNBC) — Alongside California, lawmakers in other states like Texas are grappling with energy demand for data centers (E&E News) — John Bostic, who prosecuted Theranos founder Elizabeth Holmes, says her case is a reminder to Silicon Valley to be cautious and honest about new technologies (Mercury News) With help from Nicole Norman Have a tip, event or AI chatbot prompt to send us? Do reach out: Emma Anderson, California tech editor; Chase DiFeliciantonio, AI and automation reporter; and Tyler Katzenberger, Sacramento tech reporter.
