California Governor Gavin Newsom just slammed the brakes on a controversial AI bill that could have upended tech innovation in the state. Here’s the latest crypto news
California Governor Gavin Newsom has vetoed SB 1047, a hotly-debated AI bill designed to enforce strict safety standards on large-scale artificial intelligence models.
The bill, proposed by Senator Scott Wiener, sparked fierce backlash from Silicon Valley, with concerns it would stifle technological innovation.
The proposed law sought to implement mandatory safety testing for AI models, such as requiring developers—like OpenAI, Google, and Meta—to install a “kill switch” for AI models and publish plans to mitigate extreme risks. It also would have made developers liable for legal action if AI models posed ongoing threats.
However, Newsom rejected the bill, claiming it was misguided. In a September 29 statement, he argued that SB 1047 overly focused on regulating existing AI giants without addressing the real and emerging risks of AI technology.
The governor voiced concerns that the bill applied stringent standards even to basic functions as long as they were part of large systems, hampering innovation in the process. Newsom stated:
I do not believe this is the best approach to protecting the public from real threats posed by the technology.”
He called for the creation of “science-based” AI guardrails developed with input from leading AI safety experts.
While he vetoed SB 1047, Newsom emphasized the need for AI safety protocols, stating that regulatory actions cannot wait until a catastrophic event occurs. In the last 30 days alone, his administration has signed over 18 AI-related bills.
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The bill saw pushback not only from tech giants like OpenAI and Google but also from lawmakers like House Speaker Nancy Pelosi. Neil Chilson of the Abundance Institute warned that the bill’s scope—targeting models costing more than $100 million—could eventually expand to smaller developers.
On the other hand, figures like Elon Musk, developing his own AI model “Grok,” have publicly supported SB 1047. Musk argued the bill is a tough but necessary step for AI safety.
Newsom’s veto sends a clear message: AI regulation is essential, but it needs to be done in a way that protects the public without stifling innovation.
