Key Takeaways
- RAISE Act registration opened on Tuesday, Nov. 10, and large frontier AI developers must register by Jan. 1, 2027.
- RAISE Act fines reach $3 million for repeat violations, three times the $1 million ceiling for a first violation.
- OpenAI and Anthropic were both named as companies that must register under New York's AI safety law.
- Anthropic's IPO could raise up to $64 billion, according to OpenTools, with trading expected to start Nov. 19.
New York opened registration under its RAISE Act safety law on Tuesday, Nov. 10, giving OpenAI, Anthropic and other frontier labs until Jan. 1, 2027 to sign up. MLQ.ai reported that the law takes effect on Jan. 1, 2027, and OpenTools reported that it takes effect in January 2027. Fines reach $3 million for repeat violations.
The penalties have two levels. A first violation carries fines of up to $1 million, and a repeat violation carries up to $3 million, according to MLQ.ai. Dividing $3 million by $1 million gives three, so the repeat-violation ceiling is three times the first-violation ceiling. OpenTools reported the same $3 million figure for repeat violations.
Which frontier AI developers must register under the RAISE Act
The law covers large frontier developers, which are companies that build the most advanced AI models. A developer is covered only if it trains models above 10^26 computational operations, a measure of the computing used to build a model, and has more than $500 million in annual revenue, according to MLQ.ai. A developer must meet both tests.
Both reports named OpenAI and Anthropic. MLQ.ai described them as large developers that must register by Jan. 1, 2027. OpenTools reported that the law requires them to register, publish safety frameworks and report incidents.
RAISE Act fines: $1 million for a first violation, $3 million for repeat violations
MLQ.ai reported that fines reach $1 million per violation and $3 million for subsequent violations.
TechCrunch reported that the state can take enforcement action against companies that fail to register, according to MLQ.ai. A spokesperson declined to give specifics on what that enforcement would involve.
RAISE Act reporting duties: 72-hour incident reports and quarterly risk assessments
Covered developers must publish safety and transparency frameworks on their websites. They must report critical safety incidents to DIGIT within 72 hours and submit quarterly assessments of catastrophic risks. Starting Jan. 1, 2027, they must also file a disclosure statement at least every two years, according to MLQ.ai.
DIGIT is the body that receives the incident reports. The public can also report suspected incidents to DIGIT, which will publish an annual report on what it receives.
Anthropic IPO could raise up to $64 billion
OpenTools reported that Anthropic set a $70 to $78 share price range for its initial public offering, valuing the company at roughly $1.4 trillion on a fully diluted basis. That valuation counts every share that could be issued. The offering could raise up to $64 billion, and trading is expected to start Nov. 19 under the ticker ANT, the trading symbol for its shares.
What the Jan. 1, 2027 deadline means for OpenAI and Anthropic
The registration window opened on Tuesday, and the deadline falls on the day the law takes effect. Both companies must register by that date, according to both reports.
A legal fine ceiling and an offering size are different kinds of numbers. The $3 million figure is the most the law allows for a repeat violation. The $64 billion figure is the most the offering could raise, according to OpenTools.
People Also Ask
When is the RAISE Act registration deadline?
Large frontier AI developers, including OpenAI and Anthropic, must register under the RAISE Act by Jan. 1, 2027, when the law takes effect. New York opened the registration portal on Tuesday.
How much can a company be fined under the RAISE Act?
The RAISE Act sets fines of up to $1 million for a first violation and up to $3 million for repeat violations. OpenTools reported that the fine for repeat violations reaches $3 million. MLQ.ai reported a $1 million ceiling for a first violation, so the repeat ceiling is three times that.
Which AI companies must register under the RAISE Act?
Both MLQ.ai and OpenTools name OpenAI and Anthropic as companies that must register. Under the law, a developer is covered only if it trains models above 10^26 computational operations and has more than $500 million in annual revenue.
How much could Anthropic's IPO raise?
OpenTools reported that Anthropic set a $70 to $78 share price range for its initial public offering, and that the offering could raise up to $64 billion. Trading is expected to start Nov. 19 under the ticker ANT.