The three largest AI labs are divided on state-level AI safety regulation, with billions in compliance costs and competitive positioning at stake. OpenAI and Google oppose stricter Massachusetts AI safety rules backed by Anthropic, with the latter actively supporting what it frames as the most robust state AI safety proposal in the country. The Massachusetts Senate passed an economic development bill in late July 2026 targeting developers with over $500M in AI-derived revenue or over $1B in R&D spending. Anthropic advocates for independent risk assessments every four to six months, while OpenAI prefers annual third-party audits similar to Illinois’ approach. The bill, which includes $75M earmarked for AI development, is currently in bicameral negotiations and could look substantially different in its final version.
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