At an Axios AI+NY summit on June 3, startup leaders expressed significant concerns that new artificial intelligence regulations could inadvertently favor large technology companies and stifle innovation from smaller competitors. The primary fear is that a complex and fragmented regulatory landscape, with varying state-by-state compliance requirements, will be an insurmountable hurdle for startups. Additionally, concerns were raised that regulators granting early access to advanced AI models to big tech would further widen the competitive gap. The discussion also touched upon how AI is already reshaping startup operations and hiring, and the potential negative impact of venture capital pushing unprepared companies towards premature IPOs, which could dampen investor enthusiasm for the AI market.