California Governor Gavin Newsom vetoes controversial bill on AI safety

California Gov. Gavin Newsom on Sunday vetoed a landmark artificial intelligence bill that was designed to have first-in-the-nation safety regulations against AI misuse.

The big picture: Backers of the bill that would've required AI developers to comply with certain rules before developing models had argued it would provide safety with workable provisions at a time when Congress has stalled on the matter and the EU has taken a lead in regulating the sector.

• The bill had divided the tech industry. The likes of Google Meta, and OpenAI opposed it amid concerns that it might hamper innovation and Anthropic and Elon Musk cautiously supported it.

This is a tough call and will make some people upset, but, all things considered, I think California should probably pass the SB 1047 AI safety bill.

For over 20 years, I have been an advocate for AI regulation, just as we regulate any product/technology that is a potential risk…

Driving the news: Newsom said in returning Senate Bill 1047 without his signature that while SB 1047 was "well-intentioned," it didn't take into account "whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data."

• Instead, he said "the bill applies stringent standards to even the most basic functions — so long as a large system deploys it. I do not believe this is the best approach to protecting the public from real threats posed by the technology."

What we're watching: Newsom said in an emailed statement announcing his veto that that he's working with the "godmother of AI," Fei-Fei Li and other leading researcher and industry leaders on California's efforts "to develop responsible guardrails for the deployment" of Generative AI.

• This will focus on "developing an empirical, science-based trajectory analysis of frontier models and their capabilities and attendant risks," per Newsom, who said he'll "continue to work with the Legislature on this critical matter during its next session."

What they're saying: Google in an emailed statement Sunday thanked Newsom "for helping California continue to lead in building responsible AI tools" and said it looked forward to "working with the Governor's responsible AI initiative and the federal government on creating appropriate safeguards and developing tools that help everyone."

• OpenAI said in an emailed statement Sunday that the company appreciated Newsom's "commitment to maintaining California's role as a global leader in AI innovation, and look forward to working with him and state lawmakers in well-defined areas of public interest such as deepfakes, child safety, and AI literacy."
• Former House Speaker Nancy Pelosi (D-Calif.) said on X Sunday that "AI springs from California" as she thanked Newsom "for recognizing the opportunity and responsibility we all share to enable small entrepreneurs and academia — not big tech — to dominate."

The other side: Scott Wiener, a state senator from San Francisco who authored the bill in California's Senate, said in a statement Sunday the veto represented a "missed opportunity for California to once again lead on innovative tech regulation — just as we did around data privacy and net neutrality — and we are all less safe as a result."

• Nonprofit Accountable Tech in an emailed statement Sunday called Newsom's veto "a massive giveaway to Big Tech companies and an affront to all Americans who are currently the unconsenting guinea pigs of an unregulated and untested" AI industry.
• "This veto will not 'empower innovation' — it only further entrenches the status quo  where Big Tech monopolies are allowed to rake in profits without regard for our safety, even as their AI tools are already threatening democracy, civil rights, and the environment with unknown potential for other catastrophic harms," it added.

Editor's note: This article has been updated with more details from California Gov. Gavin Newsom's announcement. Axios' Ina Fried contributed reporting.