Governor Newsom vetoes landmark AI bill, citing innovation and overregulation fears

California Governor Gavin Newsom vetoed the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB 1047), citing concerns over the burden it would place on AI companies and the possibility of it being too broad. He argued that the bill could create a "false sense of security" regarding AI regulation and emphasized the need for data-driven solutions. Newsom supported the idea of safety measures but believed California should not rush into a regulation without a thorough analysis of AI systems.

Senator Scott Wiener, the bill's author, criticized the veto, calling it a setback for efforts to regulate large corporations involved in AI and their impact on public safety. SB 1047, introduced in August, aimed to be the strictest AI regulation in the U.S., applying to AI companies with models costing over $100 million to train or $10 million to fine-tune. It proposed safeguards like a "kill switch" and legal protection for whistleblowers, while empowering the state attorney general to sue developers for potential safety incidents. 

The bill had undergone amendments, including removing plans for a new regulatory agency, but still faced opposition from AI companies and industry groups like the Chamber of Progress, which represents major tech firms. Although some companies softened their criticism after the amendments, figures like OpenAI’s Jason Kwon and Anthropic’s Dario Amodei raised concerns about its impact on AI progress. High-profile supporters of the bill included Elon Musk and Hollywood personalities, while opposition came from political figures like Nancy Pelosi and San Francisco Mayor London Breed. Meanwhile, the federal government is also considering AI regulations, with the Senate proposing a $32 billion roadmap in May to address AI’s societal impact.