As the artificial intelligence (AI) boom continues to expand, the White House is taking steps to keep it in control. In July, it announced a voluntary safety pledge for companies in the space. Getting leading AI firms to sign up hasn’t been difficult. Newcomers to the pledge include Nvidia (NASDAQ:NVDA), Palantir Technologies (NYSE:PLTR) and Adobe (NASDAQ:ADBE), as well as five others, bringing the number of new signers up to eight. Previous signatories feature Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META), along with other major leaders in AI stocks.
Among the non-publicly traded companies who have already volunteered their support include ChatGPT creator OpenAI and Anthropic.
As momentum for the initiative heats up, many AI stocks are rising today, signaling that this development won’t impact share prices.
What else do investors need to know about the White House AI safety pledge and the companies that have taken it? Let’s dive into this unfolding story and take a closer look.
AI Stocks and the Safety Pledge
It’s been an outstanding year for many AI stocks, both large and small. While public policy initiatives such as this can sometimes cast uncertainty over a sector, that doesn’t appear to be the case here. Both NVDA stock and PLTR are rising today, despite the negative market momentum pushing many tech stocks down. This momentum will likely continue tomorrow as Senate Majority Leader Chuck Schumer hosts AI leaders in a highly anticipated forum tomorrow.
Since the launch of ChatGPT in November 2023, the rise of AI has become impossible to ignore. While the progress made by companies in the space is noteworthy, many have argued that regulation is necessary before the technology gets out of hand. While Elon Musk has repeatedly sounded this alarm, none of his companies have taken the safety pledge yet. This may be because of his well-known problems with the Biden administration.
However, in this case, it appears that the White House is focused on taking care of America’s people and its companies by ensuring that AI doesn’t get out of hand. As Axios reports:
“Although not legally binding, the new companies are joining their peers in agreeing — among other things — to ensure internal and external testing before product release, to label AI-generated content using watermarking or other technology, and to share information with each other and the federal government about risks and vulnerabilities.”
The Biden administration is currently at work on other initiatives to help harness the power of AI to create a better, more robust economy that works for everyone. This includes the “No Robot Boss Act,” which would stop companies from making decisions regarding someone’s employment using AI. These motions may not sound ideal for companies in the space, but even some slight limitations aren’t likely to hinder AI stocks by too much. Companies will find ways to adapt, as they have before.
Why It Matters
Most AI innovators knew that regulation would be coming as the boom progressed. It’s likely for that reason that some of the space’s leading companies haven’t hesitated to take the safety pledge.
The list of companies taking the pledge will also continue as more and more firms sign up. As firms like Nvidia and Plantir continue their efforts to expand, it will be in their best interest to remain on good terms with the federal government. And as long as the sector’s leaders are thriving, AI stocks as a whole will continue to rise.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
