California Governor Newsom Vetoes AI Security Bill That Divided Silicon Valley

On Sunday, California Governor Gavin Newsom vetoed Senate Bill 1047 (SB 1047), a proposal to establish new safety standards for artificial intelligence systems.

Although the bill is said to be a model for future AI regulation, Newsom has argued that it could stifle innovation in California's tech sector.

Adaptability is critical as we race to master this nascent technology. This requires a delicate balance,” Newsome said. He wrote.

Newsom said SB 1047's focus on large AI models — those costing more than $100 million — could leave smaller but equally dangerous models out of sight.

The bill, authored by state Sen. Scott Wiener, sought to impose safety protocols on developers of large AI models and establish a Frontier Models Board to oversee compliance.

“By focusing only on the most expensive and large models, SB 1047 creates a framework for regulating this fast-moving technology that could give the public a false sense of security,” Newsom added.

SB 1047 has received support from tech security advocates, including Elon Musk He called for it to pass last month. “For over 20 years, I've been an advocate for AI regulation, just like we regulate any product or technology,” Musk said.

Musk's Call by AI luminaries Geoffrey Hinton and Joshua Bengio, backed by more than 125 Hollywood icons, signed an open letter urging Newsom to approve the bill.

However, the bill has faced opposition from major tech players and venture capitalists who say the regulations could stifle innovation and drive talent away from California. OpenAI, Meta and Google were among the opponents, preferring the regulation of the federal system.

Newsom echoed these concerns, suggesting a more nuanced, evidence-based approach.

“A California-only approach may well be warranted—especially without federal action by Congress—but it must be based on concrete evidence and science,” he wrote.

Senator Wiener They voted Frustrated by the veto, he warned that without the regulation, AI companies would continue to police themselves without enforceable security requirements.

While Newsom has signed other AI-related bills, including measures to combat deep-seated fraud in elections and prevent the unauthorized reproduction of actors' images by AI, the rejection of SB 1047 highlights the challenge of balancing innovation with surveillance.

Newsom pledged to work with experts, lawmakers and federal partners to develop future AI regulations, promising to “find the right path.”

Edited by Sebastian Sinclair.