- Section 230 of the Communications Decency Act may not protect AI companies from liability for their own software's outputs, as suggested by a new German ruling.
- The German decision holds companies liable for chatbot errors because such speech is not third-party content but the company's own speech.
- Sam Altman's 2023 Senate testimony claimed OpenAI should not have full immunity, but his company later supported an Illinois law shielding AI labs from liability for severe harms.
- A bipartisan bill to sunset Section 230 was introduced but has low chances of enactment due to opposition from tech giants.
- If US courts follow the German reasoning, AI providers like Google, OpenAI, and Anthropic could face liability for hallucinations, defamation, and bad medical advice.
- The author argues that removing Section 230 protection for AI companies could force the industry to reduce hallucinations and build safer systems.