A bipartisan AI bill would preempt state laws + a megaround funding week

Representatives Jay Obernolte, a California Republican, and Lori Trahan, a Massachusetts Democrat, released a 269-page discussion draft of the Great American Artificial Intelligence Act — the most comprehensive federal AI framework Congress has put forward. It would require frontier developers earning more than $500 million a year to publish safety frameworks, report critical incidents, and submit to semi-annual third-party audits. Its most contested provision would preempt state laws that specifically regulate model development for three years, drawing early pushback from safety groups even as the bill won bipartisan praise.

OpenAI began rolling out dreaming, a memory system that works in the background to synthesize what ChatGPT knows about you across many conversations, without being asked to remember anything. It also revises stale facts on its own, updating "you're going to Singapore in July" to "you went to Singapore in July" once the trip passes. A roughly five-times cut in serving cost let OpenAI extend the feature to free users in the US, with other countries to follow over the coming weeks.

GE HealthCare won FDA clearance for MIM Contour ProtégéAI+ 2.0, software that automatically outlines tumors and healthy organs on CT and MR scans — one of the most time-consuming steps in planning radiation therapy. By handling the contouring with minimal input, it frees oncology teams to spend more time tailoring each patient's treatment. The clearance also includes a change-control plan that lets GE push future updates to new body regions faster, a sign regulators are adapting to clinical AI that keeps improving after approval.

Suno raised a $400 million Series D led by Bond, more than doubling its valuation to $5.4 billion just seven months after its last round — a sign investors still see runaway demand for generative music. The raise lands while Universal Music Group, Sony, and Germany's rights society GEMA press copyright suits accusing Suno of training on tens of thousands of songs without permission; Warner settled and signed a license last year. Suno maintains its training is fair use.

Flourish, a New York startup building AI modeled on the human brain, raised $500 million at a $2.5 billion valuation, with Jeff Bezos supplying about a fifth of the capital alongside Google Ventures, Lux Capital, and Catalio. It was co-founded by former Amazon executive Rob Williams and neuroscientist Thomas Reardon, who sold a brain-computer interface company to Meta in 2019. Flourish is mapping real neurons to build a system it says could rival today's models while using far less power — though it has no product yet.

Supabase, the open-source database platform widely used to build AI apps, raised $500 million at a $10.5 billion valuation in a round led by GIC. The six-year-old San Francisco company has ridden a wave of developers and AI coding agents that spin up backends on its Postgres-based stack. The raise — one of several megarounds this week — underscores how much value is accruing to the infrastructure layer beneath the AI app boom, not just to the model labs.