California Governor Newsom Vetoes AI Safety Bill Over Innovation Concerns

Governor Gavin Newsom vetoed Senate Bill 1047, which aimed to establish new safety standards for AI systems. While the bill had support from tech safety advocates like Elon Musk, Newsom argued it could hinder innovation and failed to address risks from smaller AI models.

On Sunday, California Governor Gavin Newsom vetoed Senate Bill 1047 (SB 1047), a controversial proposal aimed at establishing new safety standards for artificial intelligence (AI) systems. The bill, authored by State Senator Scott Wiener, sought to regulate large-scale AI models and establish a Board of Frontier Models to oversee compliance.

Newsom’s decision has sparked debate across the tech industry. He argued that while the bill was intended as a model for future AI regulation, it could stifle innovation in California’s highly competitive tech sector. “Adaptability is critical as we race to regulate a technology still in its infancy. This will require a delicate balance,” Newsom explained in his veto statement.

SB 1047 focused on AI models costing over $100 million, leaving smaller but potentially risky models unregulated. Newsom warned that this selective approach could provide a false sense of security. “By focusing only on the most expensive and large-scale models, SB 1047 creates a framework that could give the public a false sense of security about controlling this fast-moving technology,” he added.

Support and Opposition
The bill had garnered significant support from AI safety advocates, including tech mogul Elon Musk, who urged for its passage. “For over 20 years, I have been an advocate for AI regulation, just as we regulate any product or technology that poses a risk to the public,” Musk said. AI pioneers Geoffrey Hinton and Yoshua Bengio, along with over 125 Hollywood figures, also signed an open letter urging Newsom to approve the bill.

Despite this backing, the bill faced strong opposition from major tech players like OpenAI, Meta, and Google, as well as venture capitalists. Critics argued that California-specific regulations could hamper innovation and drive talent away, preferring a more unified federal approach to AI oversight.

A Delicate Balance
Newsom echoed these concerns, emphasizing the need for a nuanced, evidence-based approach. “A California-only approach may well be warranted—especially absent federal action by Congress—but it must be grounded in empirical evidence and science,” Newsom wrote.

Although Senator Wiener expressed disappointment with the veto, warning that self-regulation by AI companies may not be sufficient to ensure safety, Newsom remains committed to working with experts, lawmakers, and federal partners to develop future regulations. He pledged to “find the appropriate path forward” in regulating AI while protecting innovation.

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