New York Can Fine OpenAI and Anthropic Up to 3 Million Dollars Under New AI Law

New York's artificial intelligence safety law took effect Tuesday, opening a state registration portal that requires OpenAI, Anthropic and other large AI developers to disclose their safety practices or risk fines of up to $3 million, according to Governor Kathy Hochul's office.

The RAISE Act covers "large frontier developers," defined as AI companies with more than $500 million in annual revenue. Those companies must register with New York's new Office of Digital Innovation, Governance, Integrity, and Trust, known as DIGIT, by January 1, 2027, TechCrunch reported. OpenAI and Anthropic were named as examples of companies subject to the requirement.

Under the law, covered developers must publish safety frameworks on their websites, report critical safety incidents within 72 hours and issue public model transparency reports. A first violation can bring a fine of up to $1 million, rising to $3 million for subsequent violations. A state spokesperson declined to specify how New York plans to enforce the law against companies that do not register, TechCrunch reported.

Hochul paired the law's start with the launch of the New York Center for AI Responsibility and Research at Binghamton University, which she said will bring together more than 80 researchers to independently test advanced AI systems using the state's Empire AI computing initiative. Computer scientists Greg Morrisett of Cornell Tech and Jeannette Wing of Columbia University will serve as interim co-directors.

"The stakes are too high to simply take AI companies at their word." – Governor Kathy Hochul

Hochul said the state is "building a national model for smart, sensible AI regulation" that puts "communities above corporations and people above powerful technology." She said that with "the federal government" failing "to act," New York is "leading the way on AI safety and holding big tech accountable."

Kaitlin Asrow, acting superintendent of the state's Department of Financial Services, which houses DIGIT, said the office is "proud to lead the implementation of the RAISE Act." The research center builds on a January announcement that included $30 million from Binghamton alumnus and Bloomberg LP co-founder Tom Secunda and $25 million from the State University of New York system.

New York's law follows similar measures in California and Illinois, and arrives as other governments take their own steps toward AI oversight. California's SB 53, which took effect in January, requires frontier labs to publish safety frameworks, adopt whistleblower protections and report safety incidents within 15 days, a shorter window than New York's 72 hours. Illinois' SB 315, due to take effect at the start of 2027, adds a requirement for independent safety compliance audits. Australia said this month it would create its own dedicated AI regulator after a dispute over a rogue OpenAI agent.

New York has also acted this year on AI and minors. A law enforced since last year requires AI companion operators to disclose that users are talking to a bot and to make efforts to detect suicidal ideation. A separate law Hochul signed in October restricts "deceptive human-like interactions" and self-harm encouragement in chatbots aimed at minors; that law takes effect June 1, 2027.

Neither OpenAI nor Anthropic had publicly responded to the registration requirement as of Tuesday.