San Francisco is gearing up to prohibit landlords from using AI-powered tools that set housing prices.
The Board of Supervisors approved a new ordinance this week, introduced by Supervisor Aaron Peskin, that bans the use of algorithmic software to set rental prices and increases.
“Banning algorithmic price gouging is pro-housing policy, and it’s entirely consistent with our shared goal of a functioning housing market that meets our real housing needs,” Peskin said during a board meeting, KQED reported. “Wall Street has gotten into the housing business, and it’s a phenomenon we have seen here locally.”
The move comes after a wave of lawsuits were filed against large landlords and real estate companies that were using software from a Texas-based company called RealPage that was acquired by private equity giant Thoma Bravo for $10 billion in 2021.
Multiple state attorneys general have also opened investigations or filed lawsuits against RealPage, as well, including D.C., Arizona and North Carolina.
In San Francisco, the legislation will be up for final approval on Sept. 3.
Data Deals
San Francisco-based Perplexity AI announced an anticipated revenue sharing model for publishers after battling allegations of copyright infringement and theft from publications like Forbes. Fortune, Der Spiegel, and Time are a few of Perplexity's initial publishing partners, Semafor reported.
Rules and regulations
The European Union has officially implemented the world's first major AI regulation. Known as the AI Act, the law establishes different risk levels which each have different stipulations and rules. High risk applications include decision making and development around autonomous cars, medical devices, loans, education and biometric data. There are also "unacceptable" uses for AI such as social scoring, predictive policing and reading people's emotions. CNBC has more details.
IPO Watch
Sunnyvale-based chips startup Cerebras Systems is gearing up for a public debut. The company filed confidentially for an IPO. Reuters has more details.
Funding rounds to know
Palo Alto-based Credo AI raised $21 million from lead investor CrimsoNox Capital, as well as Mozilla Ventures, FPV Ventures, Sands Capital, Decibel VC, Booz Allen Hamilton and AI Fund.
The new cash comes around two years since Credo closed its Series A round and just about doubles its total funding to over $41 million, the company announced on Tuesday.
Full story: Bay Area responsible AI startup raises $21 million
San Francisco-based legal software startup Harvey AI raised $100 million in a Series C round led by GV. Other investors included OpenAI, Kleiner Perkins, Sequoia Capital, Elad Gil and SV Angel. The round valued Harvey at $1.5 billion, Reuters reported.
Ema raised $36 million in a Series A extension round that was led by Accel and Section 32, Venture Beat reported. The San Francisco startup is developing AI-powered assistants, or agents.
A San Francisco startup called Not Diamond raised $2.3 million in seed funding. The company is developing an "router" for finding the best large language models for different business needs. Venture Beat has more details.
San Francisco fintech startup Global Predictions doubled its total funding with a new $2 million funding round. The company is developing automated financial advisor services and says it has more than 22,000 users and $20 billion in assets, CNBC reported. Earlier this year, Global Predictions paid an SEC fine over alleged misleading marketing claims.
Kollegio AI raised $750,000 in seed funding from three investors, according to PitchBook. The Stanford startup was founded by two college students who are developing a suite of AI-powered tools to help with college selection, writing essays and managing deadlines. The SF Chronicle has more details.
Must reads
My Mom Says She Loves Me. AI Says She’s Lying. -the Atlantic
US progressives push for Nvidia antitrust investigation -Reuters
Reddit acquires artificial intelligence adtech startup Memorable AI -Business Insider
Meta moves on from its celebrity lookalike AI chatbots -the Verge
Wall Street’s $2 Trillion AI Reckoning -New York Magazine
Tax preparation company Intuit to lay off 1,800 as part of an AI-focused reorganization plan -AP News
OpenAI Is Launching Search Engine, Taking Direct Aim at Google -WSJ
