WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This Act may be cited as the ''AI Foundation ModelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) Transparency Act of 2026''.
Establishes the short title of the Act as the AI Foundation Model Transparency Act of 2026. No operative obligations are imposed by this section.
(a)(1)(A) 1 In accordance with section 553 of title 5, United States Code, promulgate regulations that: (A) Establish requirements for covered entities with regard to foundation modelsFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) to improve transparency of training dataTraining dataThe term "training data" means, with respect to a foundation model, the data on which such foundation model was trained.Sec. 2(l)(11), documentation, testing, data collection during inferenceInferenceThe term "inference" means, with respect to a foundation model, when such foundation model is operated by a user to produce a result.Sec. 2(l)(6), and operations of foundation modelsFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5), before commercial deployment and during the lifecycle of the system.
(a)(1)(B) 2 Include requirements for a covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A)— (i) to submit specified information related to each foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) provided by the entity to the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2); and (ii) to make publicly available certain information related to each foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) provided by the entity.
(a)(1)(C) 3 Specify the form and manner in which the information described in subparagraph (B)(ii) is made publicly available, including the following: (i) Information that is required to be made available on the website of a covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) that relates to any foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) provided by the entity. (ii) Information that is required to be displayed in a central location on a website hosted by the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2), including, with respect to a foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5), information that is substantially similar to the information required under clause (i). (iii) Information submitted to the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) that is not required to be publicly displayed, including sensitive or personally identifiable data or information, or information that would compromise the cybersecurity of the foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5). (iv) A requirement for a human-readable and consumer-friendly format to be used with respect to the information described in clause (i). (v) A requirement for a machine-readable format to be used with respect to the information described under clause (ii). (vi) The URL for the central location described in clause (ii).
(a)(1)(D) Provide an option for a covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) to be deemed in compliance with some or all of this Act if the covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) publishes the information determined to be necessary by the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) pursuant to subsection (a)(1)(A) as part of a larger document, including a system card or model card.
(a)(1)(E) Specify a process for a covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) to submit the information required under subparagraph (B)(i) to the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2).
(a)(2) Issue guidance to assist covered entities to comply with the standards established under paragraph (1).
This subsection directs the FTC, within one year of enactment and in consultation with NIST, the Secretary of Commerce, OSTP, and other stakeholders, to promulgate regulations establishing transparency requirements for covered entities with regard to their foundation models. The regulations must require covered entities to both submit information to the FTC and make certain information publicly available — on the covered entity's own website in human-readable format and on a central FTC-hosted website in machine-readable format. The FTC must also specify which submitted information need not be publicly displayed (sensitive data, cybersecurity-compromising information) and issue compliance guidance. A safe-harbor compliance option is provided for entities that publish required information as part of a system card or model card.
(b)(1) 4 A sufficiently detailed summary of the sources of training dataTraining dataThe term "training data" means, with respect to a foundation model, the data on which such foundation model was trained.Sec. 2(l)(11), how training dataTraining dataThe term "training data" means, with respect to a foundation model, the data on which such foundation model was trained.Sec. 2(l)(11) is collected, and whether and how data is collected and retained during inferenceInferenceThe term "inference" means, with respect to a foundation model, when such foundation model is operated by a user to produce a result.Sec. 2(l)(6).
(b)(2) 4 A broad description of the size and composition of such training dataTraining dataThe term "training data" means, with respect to a foundation model, the data on which such foundation model was trained.Sec. 2(l)(11), including types of demographic information, language information, and other attribute information, while accounting for privacy.
(b)(3) 5 A description of data governance procedures.
(b)(4) 6 A description of the intended purposes and foreseen limitations or risks of the foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5), an overview of past edits to such model, the version and date of release of such model, the knowledge cutoff date of the training data of such model, and information on adverse incident monitoring and response procedures.
(b)(5) 6 A list of or information about languages supported by the model.
(b)(6) 7 A description of the efforts of the covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) to align the foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) and the transparency of such model with— (A) the AI Risk Management Framework (or any successor framework) of the National Institute of Standards and Technology; (B) a similar Federal Government-approved consensus technical standard; or (C) the model specification of any covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A), including intended model behavior or outcomes and guardrails for the model.
(b)(7) 8 Performance under evaluation, either self-driven or through audit, on public or industry standard benchmarks, including what precautions the foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) takes to answer or respond to situations with higher levels of risk of providing inaccurate or harmful information, including, if such model responds to such questions, relating to the following: (A) Medical, health, or healthcare questions. (B) Biological, chemical, radiological, or nuclear weapons. (C) National security. (D) Cybersecurity. (E) Threats to critical infrastructureCritical infrastructureThe term "critical infrastructure" has the meaning given that term in subsection (e) of the Critical Infrastructures Protection Act of 2001 (42 U.S.C. 5195c(e)).Sec. 2(l)(4). (F) Elections. (G) Law enforcement. (H) Financial loan or housing decisions. (I) Education. (J) Employment or hiring decisions. (K) Public services. (L) Information relating to vulnerable populations, including minorsMinorThe term "minor" means any individual under the age of 18 years.Sec. 2(l)(7) and seniorsSeniorThe term "senior" means an individual who is 65 years of age or older.Sec. 2(l)(9).
(b)(8) 9 Information on the computational power used to train and operate a foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5).
This subsection enumerates the eight categories of information the FTC must require in the transparency regulations. The required disclosures span training data sources and collection methods, dataset size and composition (including demographics and language), data governance procedures, intended purposes and known risks, language support, alignment with the NIST AI RMF or equivalent frameworks, performance on safety benchmarks across twelve high-risk domains (healthcare, CBRN, elections, etc.), and computational power used for training and operation. Together these categories define the minimum content of the model transparency documentation that covered entities must produce.
(c) A fully open-source model is exempt from the regulations promulgated by the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) pursuant to subsection (a).
Fully open-source models are categorically exempted from the transparency regulations promulgated under subsection (a). The bill does not define what constitutes a fully open-source model, leaving that determination to common understanding or future FTC guidance.
(d)(1) 10 shall publicly provide a URL to the transparency disclosure website of the base foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) if the base model is in compliance with the regulations promulgated in subsection (a); and
(d)(2) 11 shall comply with regulations promulgated in subsection (a) related to any significant change, retraining, or adaptation from such base foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5).
Covered entities whose foundation models are derived from or built upon another covered entity's foundation model — including through API access — face a two-part obligation: they must publicly link to the base model's transparency disclosure page (if the base model is compliant), and they must independently comply with the transparency regulations for any significant change, retraining, or adaptation they apply to the base model.
(e)(1)–(3) The CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) shall establish a plan to assist small businessesSmall businessThe term "small business" has the meaning given the term "small business concern" in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).Sec. 2(l)(10) and new businessesNew businessThe term "new business" means a startup or other new business that has been in operation for less than 1 year.Sec. 2(l)(8) that are covered entities with compliance with the regulations promulgated pursuant to subsection (a) and to reduce the burdens imposed by such regulations, including by: (1) Publishing guidance for compliance, including sample guidance and a machine-readable template, to be jointly developed by the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) and the Director of the National Institute for Standards and Technology, for such covered entities to use that will facilitate compliance with such regulations. (2) Providing one three-month grace period beginning on the date on which a small businessSmall businessThe term "small business" has the meaning given the term "small business concern" in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).Sec. 2(l)(10) or new businessNew businessThe term "new business" means a startup or other new business that has been in operation for less than 1 year.Sec. 2(l)(8) becomes a covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) during which such covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) is not subject to penalties under this Act or any regulation promulgated pursuant to this Act. (3) Providing a qualified, technically proficient representative to meet on multiple occasions during such grace period with such covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) to provide guidance to assist the covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) with compliance with the regulations promulgated pursuant to subsection (a).
The FTC must establish a compliance assistance plan for small businesses and new businesses that are covered entities. This includes publishing compliance guidance and machine-readable templates (jointly developed with NIST), providing a three-month grace period during which no penalties apply, and offering multiple in-person or remote meetings with a qualified technical representative during the grace period. This provision reduces the compliance burden on smaller entrants but does not eliminate the underlying obligations.
(f) Not later than 1 year after the date of the enactment of this Act, the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) shall establish a web page on the website of the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) that includes recommendations on foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) transparency for foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) developers or downstream deployers of a foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) that are not covered entities, including recommended resources such as the AI Risk Management Framework of the National Institute of Standards and Technology.
Within one year of enactment, the FTC must establish a public web page with transparency recommendations for foundation model developers and downstream deployers that are not covered entities, including references to the NIST AI Risk Management Framework. This section imposes an obligation on the FTC, not on covered entities.
(g)(1)–(2) 12 If a covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) publishes documents or submits information to the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) to comply with this Act, the covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) may make redactions to those documents that are necessary— (A) to protect the cybersecurity and security of the covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) or model, public safety, or the national security of the United States; or (B) to comply with any Federal law. (2) Any redaction shall be briefly identified and justified in the publication or submission.
Covered entities may redact information from published or submitted documents where necessary to protect cybersecurity, entity or model security, public safety, or U.S. national security, or to comply with any federal law. Every redaction must be briefly identified and justified in the publication or submission. This provision modifies the scope of the disclosure obligations by permitting narrowly justified redactions.
(h) The regulations required by subsection (a)(1) shall apply beginning on the date that is 90 days after the date on which the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) promulgates such regulations.
The transparency regulations take effect 90 days after the FTC promulgates them, giving covered entities a brief runway between final rule publication and enforcement.
(i) Not later than 1 year after the date on which the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) promulgates the regulations required by subsection (a)(1), and annually thereafter, the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2), in consultation with the Director of the National Institute of Standards and Technology and the Secretary of Commerce, shall assess the requirements established by the regulations and update the regulations to incorporate any necessary update to such requirements.
The FTC must assess and update the transparency regulations within one year of promulgation and annually thereafter, in consultation with NIST and the Secretary of Commerce. This ensures the regulatory framework keeps pace with evolving AI capabilities and industry practices.
(j)(1)–(2) A violation of a regulation promulgated under subsection (a)(1) shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (2) Except as provided in subsection (l)(3)(C)— (A) the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) shall enforce the regulations promulgated under subsection (a)(1) in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section; (B) any covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A) that violates a regulation promulgated under subsection (a)(1) shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) Act; and (C) the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) shall provide covered entities with notice that they are covered entities not less than fourteen days before taking any enforcement action.
Violations of the transparency regulations are treated as violations of FTC Act section 18(a)(1)(B) — unfair or deceptive acts or practices. The FTC enforces with the same jurisdiction, powers, and duties as under the FTC Act. Violating covered entities are subject to FTC Act penalties and entitled to FTC Act privileges and immunities. Notably, the FTC must provide covered entities with at least 14 days' notice before any enforcement action. FTC jurisdiction is extended beyond its usual limits to cover common carriers under the Communications Act and nonprofit organizations.
(k) Not later than 1 year after the date of the enactment of this Act, the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) shall submit to the Committee on Energy and Commerce and the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the establishment, implementation, and enforcement of the regulations issued pursuant to subsection (a)(1).
The FTC must submit a report to relevant House and Senate committees within one year of enactment on the establishment, implementation, and enforcement of the transparency regulations. This imposes an obligation on the FTC, not on covered entities.
(l)(1) The term ''artificial intelligenceArtificial intelligenceThe term "artificial intelligence" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401; Public Law 116–283).Sec. 2(l)(1)'' has the meaning given that term in section 5002 of the National Artificial IntelligenceArtificial intelligenceThe term "artificial intelligence" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401; Public Law 116–283).Sec. 2(l)(1) Initiative Act of 2020 (15 U.S.C. 9401; Public Law 116–283).
(l)(2) The term ''CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2)'' means the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2).
(l)(3)(A)–(C) The term ''covered entityCovered entityThe term "covered entity" means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation model which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation model download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies.Sec. 2(l)(3)(A)'' means any person, partnership, or corporation described in subparagraph (C) that provides use of or services from a foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) which does any of the following: (i) Exhibits, or could be easily modified to exhibit, high levels of performance at tasks that could pose a significant risk to security, national economic security, consumer protection, civil rights, national public health or safety, or any combination of those matters. (ii) Has, in aggregate, over 10,000,000 monthly users, including users of second party entities that use such model. (iii) Has in aggregate, over 10,000,000 monthly foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) download instances if the model is typically downloaded once for use by a user. (iv) Was trained using a quantity of computing power greater than 10²⁶ integer or floating point operations, including computing used by the entity for the original training run and for any subsequent fine-tuning, reinforcement learning, or other material modifications the entity applies. (B) The CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2), in consultation with the Director of the National Institute of Standards and Technology, the Secretary of Commerce, and the Director of the Office of Science and Technology Policy, may, by regulation promulgated in accordance with section 553 of title 5, United States Code, update the number of monthly output instances for purposes of subparagraph (A)(i), the number of monthly users for purposes of subparagraph (A)(ii), the number of monthly foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) download instances for purposes of subparagraph (A)(iii), or the quantity of computing power for purposes of subparagraph (A)(iv) as the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) considers appropriate. (C) The persons, partnerships, and corporations described in this subparagraph are— (i) any person, partnership, or corporation over which the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) has jurisdiction under section 5(a)(2) of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) Act (15 U.S.C. 45(a)(2)); and (ii) notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2) Act (15 U.S.C. 44; 45(a)(2); 46) or any jurisdictional limitation of the CommissionCommissionThe term "Commission" means the Federal Trade Commission.Sec. 2(l)(2)— (I) any common carrier subject to the Communications Act of 1934 (47 U.S.C. 151 et seq.) and all Acts amendatory thereof and supplementary thereto; and (II) any organization not organized to carry on business for its own profit or that of its members.
(l)(4) The term ''critical infrastructureCritical infrastructureThe term "critical infrastructure" has the meaning given that term in subsection (e) of the Critical Infrastructures Protection Act of 2001 (42 U.S.C. 5195c(e)).Sec. 2(l)(4)'' has the meaning given that term in subsection (e) of the Critical InfrastructuresCritical infrastructureThe term "critical infrastructure" has the meaning given that term in subsection (e) of the Critical Infrastructures Protection Act of 2001 (42 U.S.C. 5195c(e)).Sec. 2(l)(4) Protection Act of 2001 (42 U.S.C. 5195c(e)).
(l)(5)(A)–(B) The term ''foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5)'' means an artificial intelligenceArtificial intelligenceThe term "artificial intelligence" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401; Public Law 116–283).Sec. 2(l)(1) model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferencesInferenceThe term "inference" means, with respect to a foundation model, when such foundation model is operated by a user to produce a result.Sec. 2(l)(6). (B) The term ''foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5)'' includes an artificial intelligenceArtificial intelligenceThe term "artificial intelligence" has the meaning given that term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401; Public Law 116–283).Sec. 2(l)(1) model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.
(l)(6) The term ''inferenceInferenceThe term "inference" means, with respect to a foundation model, when such foundation model is operated by a user to produce a result.Sec. 2(l)(6)'' means, with respect to a foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5), when such foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) is operated by a user to produce a result.
(l)(7) The term ''minorMinorThe term "minor" means any individual under the age of 18 years.Sec. 2(l)(7)'' means any individual under the age of 18 years.
(l)(8) The term ''new businessNew businessThe term "new business" means a startup or other new business that has been in operation for less than 1 year.Sec. 2(l)(8)'' means a startup or other new businessNew businessThe term "new business" means a startup or other new business that has been in operation for less than 1 year.Sec. 2(l)(8) that has been in operation for less than 1 year.
(l)(9) The term ''seniorSeniorThe term "senior" means an individual who is 65 years of age or older.Sec. 2(l)(9)'' means an individual who is 65 years of age or older.
(l)(10) The term ''small businessSmall businessThe term "small business" has the meaning given the term "small business concern" in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).Sec. 2(l)(10)'' has the meaning given the term ''small businessSmall businessThe term "small business" has the meaning given the term "small business concern" in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).Sec. 2(l)(10) concern'' in section 3(a) of the Small BusinessSmall businessThe term "small business" has the meaning given the term "small business concern" in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).Sec. 2(l)(10) Act (15 U.S.C. 632(a)).
(l)(11) The term ''training dataTraining dataThe term "training data" means, with respect to a foundation model, the data on which such foundation model was trained.Sec. 2(l)(11)'' means, with respect to a foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5), the data on which such foundation modelFoundation modelThe term "foundation model" means an artificial intelligence model that meets the following requirements: (i) Is trained on broad data. (ii) Generally uses self-supervision. (iii) Generally contains at least 1,000,000,000 parameters. (iv) Is designed for generality of output. (v) Is generally applicable across a wide range of contexts, adaptable to a wide range of tasks, or can issue a wide range of outputs in response to inferences. The term "foundation model" includes an artificial intelligence model otherwise described in subparagraph (A) even if such model is provided to users with technical safeguards that attempt to prevent users from taking advantage of any relevant capabilities that may be unsafe for consumer use.Sec. 2(l)(5) was trained.
This subsection defines eleven terms used throughout the bill. The two most significant for compliance are covered entity — which reaches any person, partnership, or corporation (including common carriers and nonprofits) that provides a foundation model meeting any one of four thresholds (high-risk capability, 10M+ monthly users, 10M+ monthly downloads, or 10²⁶+ training compute) — and foundation model, defined as a broad-data, self-supervised AI model of at least 1 billion parameters designed for general-purpose output. The FTC may update the numeric thresholds by regulation. The definition of covered entity extends FTC jurisdiction beyond its usual boundaries to include common carriers and nonprofits.