California Governor Newsom Vetoes AI Safety Bill Amid Industry Concerns

California Governor Gavin Newsom on Sunday vetoed a closely-watched AI safety bill, expressing concerns that the bill’s broad scope could negatively affect innovation and AI development in the state. The bill, authored by State Senator Scott Wiener, aimed to regulate high-risk AI systems but faced strong opposition from major tech companies and some federal lawmakers.

Governor’s Concerns and Industry Opposition

Newsom criticized the bill for not considering the risk levels or the sensitivity of data involved in AI applications. He argued it would impose “stringent standards” on even the most basic AI functions deployed by large systems. To address the risks of AI while fostering innovation, Newsom called on leading experts to help develop "workable guardrails" informed by scientific analysis and directed state agencies to assess potential AI-related catastrophic risks. The Chamber of Progress, a tech industry coalition, supported Newsom's veto, stating that California's tech economy benefits from competition and openness.

Proponents Push for AI Regulation

Senator Wiener contended that the legislation was necessary to implement proactive safeguards before AI systems became too advanced to control. Following the veto, he expressed concern that California would be left less protected, as companies developing powerful AI face no binding safety restrictions. He criticized the reliance on voluntary commitments from AI developers, arguing these are rarely effective in protecting the public interest.

Legislation and Infrastructure Safeguards

The proposed bill focused on generative AI, which can produce content like text, photos, and videos in response to prompts. It mandated safety testing for advanced AI models costing over $100 million to develop or requiring significant computing power and would have created a state body to oversee "Frontier Models" exceeding current AI capabilities. Newsom’s veto reflects the challenges in balancing regulation with innovation, especially as federal AI oversight legislation stalls in Congress. However, he signed a separate measure requiring risk assessments of AI threats to California's critical infrastructure, including the energy and water sectors.

Tech Industry's Mixed Response

Major tech companies like Google, OpenAI, and Meta, who are developing generative AI models, opposed the bill, citing concerns over its potential to stifle innovation. Some federal lawmakers, including Rep. Nancy Pelosi, also opposed it. However, proponents included Tesla’s CEO Elon Musk, who runs the AI firm xAI, and Amazon-backed Anthropic, which supported the bill while noting concerns about certain provisions.