4 ms·

Won't AI companies just pack up and move?

duxup 3y ago
Do they want to do business in CA? I think so.
wolverine876 3y ago
Businesses threaten this, but if they really want no regulation there are countries that have none at all. It turns out that a well-regulated market is a better place to do business. It also attracts smart, talented people who want to live in the best living environment - schools, roads, culture; a place filled with people who want to build a great community - not the best environment for the billionaire founder who cares only for themself and their estate. Much more wealth is generated, many more industries have been born and thrived, in places like CA and NY than in less-regulated, lower-wage, no/low-tax states. The correlation looks very strong by the eyeball method.
- sroussey 3y ago
  Yet very few companies incorporate in California. Also, LA put in a tax regime where all the studios left the city for neighbors like Burbank and Culver City.
  - wolverine876 3y ago
    > very few companies incorporate in California They incorporate in Deleware, where they don't locate. That's irrelevant. California's economy and business is incredible, historic.
  - kelnos 3y ago
    Incorporation location is irrelevant to this discussion. While governance of a Delaware corporation is litigated in Delaware business courts, a Delaware corporation that is headquartered in California, or even does business in California, needs to obey California law. And there are quite a few of them, to put it mildly.
epistasis 3y ago
Why? What benefit and cost is there to moving? I don't think there is any benefit, and there is massive cost to moving for any company, especially one that is built on a highly specialized labor force that doesn't want to move. At least, that's my best reading of this article's interpretation of the law's impact.
- s3r3nity 3y ago
  > there is massive cost to moving for any company, especially one that is built on a highly specialized labor force that doesn't want to move. California is banking way too hard on people who want to work for companies that do not want to pay them enough to live there, do not want to pay them to work remotely, actively campaign against building more housing, and actively support immigration policies that continue to push down the wages of these individuals as well as make this "specialized" labor force less "specialized." You would assume that there's a limit to what both the workers and the businesses are willing to put up with.
  - corethree 3y ago
    I don't think he undertands people are more and more hating CA, both inside and outside of the state.
  - epistasis 3y ago
    This is for the employees that do not get paid enough to live in California, sure. But those employees are not the ones that caused OpenAI to start and headquarter in San Francisco. Its started there becuase of the employees that do get paid enough to live in the state comfortably, and benefit massively from the aggregation of capital and experience in the Bay Area. Perhaps somebody else can do the same elsewhere! Which would be interesting to see. California treats anybody with less than several million in net worth and less than $400k/year in household income absolutely terribly. But that's a far bigger impact than this proposed AI legislation.
- corethree 3y ago
  Same reason why Tesla moved and why tons of people are moving out of CA. There's a huge benefit. Also don't think that this workforce is exclusive to CA. AI is easy to learn, it's not quantum physics.

Do they want to do business in CA? I think so.

Businesses threaten this, but if they really want no regulation there are countries that have none at all. It turns out that a well-regulated market is a better place to do business. It also attracts smart, talented people who want to live in the best living environment - schools, roads, culture; a place filled with people who want to build a great community - not the best environment for the billionaire founder who cares only for themself and their estate. Much more wealth is generated, many more industries have been born and thrived, in places like CA and NY than in less-regulated, lower-wage, no/low-tax states. The correlation looks very strong by the eyeball method.

sroussey 3y ago
Yet very few companies incorporate in California. Also, LA put in a tax regime where all the studios left the city for neighbors like Burbank and Culver City.
- wolverine876 3y ago
  > very few companies incorporate in California They incorporate in Deleware, where they don't locate. That's irrelevant. California's economy and business is incredible, historic.
- kelnos 3y ago
  Incorporation location is irrelevant to this discussion. While governance of a Delaware corporation is litigated in Delaware business courts, a Delaware corporation that is headquartered in California, or even does business in California, needs to obey California law. And there are quite a few of them, to put it mildly.

epistasis 3y ago

Why? What benefit and cost is there to moving? I don't think there is any benefit, and there is massive cost to moving for any company, especially one that is built on a highly specialized labor force that doesn't want to move. At least, that's my best reading of this article's interpretation of the law's impact.

s3r3nity 3y ago
> there is massive cost to moving for any company, especially one that is built on a highly specialized labor force that doesn't want to move. California is banking way too hard on people who want to work for companies that do not want to pay them enough to live there, do not want to pay them to work remotely, actively campaign against building more housing, and actively support immigration policies that continue to push down the wages of these individuals as well as make this "specialized" labor force less "specialized." You would assume that there's a limit to what both the workers and the businesses are willing to put up with.
- corethree 3y ago
  I don't think he undertands people are more and more hating CA, both inside and outside of the state.
- epistasis 3y ago
  This is for the employees that do not get paid enough to live in California, sure. But those employees are not the ones that caused OpenAI to start and headquarter in San Francisco. Its started there becuase of the employees that do get paid enough to live in the state comfortably, and benefit massively from the aggregation of capital and experience in the Bay Area. Perhaps somebody else can do the same elsewhere! Which would be interesting to see. California treats anybody with less than several million in net worth and less than $400k/year in household income absolutely terribly. But that's a far bigger impact than this proposed AI legislation.
corethree 3y ago
Same reason why Tesla moved and why tons of people are moving out of CA. There's a huge benefit. Also don't think that this workforce is exclusive to CA. AI is easy to learn, it's not quantum physics.