The bill is really interesting. The premise of the bill is that a "Covered Model" is an AI model trained AND/OR fine-tuned based on the scale of compute and cost to create the model, specifically a mode that cost 100 million to train initially, based on the compute cost to do so to achieve a certain power...

And a model finetuned where the developer had to invest 10 million+ to fine-tune the model of an already 'covered, $100MM model'

Where the key takeaway is that they are creating a new AI governance Body, and it will be under the perview of the Attorney General, and a Consortium of AI elites. "CalCompute" will be the state agency, and the AG can require any entitiy using the Covered Models to effectively hand over their Weights/Security Protocols -- Effectively they can State Seize an AI model.

And they are creating a DHS for AI.

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1) “Covered model” means either of the following:

(A) Before January 1, 2027, “covered model” means either of the following:

(i) An artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars ($100,000,000) when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.

(ii) An artificial intelligence model created by fine-tuning a covered model using a quantity of computing power equal to or greater than three times 10^25 integer or floating-point operations. operations, the cost of which, as reasonably assessed by the developer, exceeds ten million dollars ($10,000,000) if calculated using the average market price of cloud compute at the start of fine-tuning.

(B) (i) Except as provided in clause (ii), on and after January 1, 2027, “covered model” means any of the following:

(I) An artificial intelligence model trained using a quantity of computing power determined by the Frontier Model Division Government Operations Agency pursuant to Section 11547.6 of the Government Code, the cost of which exceeds one hundred million dollars ($100,000,000) when calculated using the average market price of cloud compute at the start of training as reasonably assessed by the developer.
(II) An artificial intelligence model created by fine-tuning a covered model using a quantity of computing power that exceeds a threshold determined by the Frontier Model Division. Government Operations Agency, the cost of which, as reasonably assessed by the developer, exceeds ten million dollars ($10,000,000) if calculated using the average market price of cloud compute at the start of fine-tuning.

(ii) If the Frontier Model Division Government Operations Agency does not adopt a regulation governing subclauses (I) and (II) of clause (i) by before January 1, 2027, the definition of “covered model” in subparagraph (A) continues to shall be in effect operative until the regulation is adopted.

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And it requires any developer of a Covered Model to retain an independent auditor, and provide an annual compliance report to the AG on the safety of the model - and they have to report safety incidents for cyber attacks.

Its really important that anyone using AI actually read this bill:

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml...