Ted Cruz says AI Moratorium Still in Play, Section 230 Protection Unclear

U.S. Senator Ted Cruz (R) signaled that efforts to pause state-level regulation of artificial intelligence are not over, despite the provision being dropped from AI legislation recently signed into law.

"I still think we'll get there. I'm working closely with the White House," Cruz announced, speaking at the Axios AI+ DC Summit.

Cruz, who is the chairman of the Senate Commerce Committee, has been one of Congress' most vocal advocates for light-touch regulation of emerging technologies. He has pushed for a federal moratorium on state-level AI rules and recently introduced a bill to establish a regulatory "sandbox" giving AI companies temporary relief from certain requirements.

Regarding liability, Cruz noted that courts may determine AI companies are covered by Section 230 of the Communications Decency Act, which shields online platforms from liability for user-generated content.

"I suspect the argument will be that under the plain language of 230, AI falls within it," Cruz said.

He did not fully endorse whether Section 230 should apply to AI, but argued that broader reform of the statute is necessary to curb what he views as censorship by major technology platforms. He framed the regulatory debate as both a free speech issue and a matter of global competition.

"Whichever nation wins the race for AI, the values of that nation will dominate AI," he warned.

The moratorium provision, once considered important in the legislative process, was cut late in negotiations. Cruz suggests it could be attached to future legislation.