California Governor Gavin Newsom Vetoes AI Safety Bill SB 1047, Citing Unnecessary Restrictions on Innovation

YEREVAN (CoinChapter.com) — On Sep. 30, California Governor Gavin Newsom vetoed SB 1047, a widely discussed AI safety bill.

California Governor Gavin Newsom has vetoed a bill that aimed to regulate artificial intelligence (AI) safety in the state, following strong opposition from major tech companies.

The bill, SB 1047, was titled the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act. It faced significant opposition from the tech industry in Silicon Valley, which argued that the bill's regulations would hinder AI development in California and ultimately harm innovation.

In a statement on Sep. 29, Newsom said that the bill had good intentions but focused too heavily on regulating existing AI firms. He added that the bill failed to address the real risks posed by evolving AI technologies and instead imposed unnecessary restrictions on even basic AI functions.

"This bill largely applies retroactively to a small number of existing technologies and does not advance our goal of ensuring the safe development of future AI models," Newsom said in his veto message.

The bill proposed mandatory safety tests for AI models and required developers to implement a "kill switch" for their AI systems, which could be used by the state to deactivate the models in case of extreme risks. It also stated that AI developers could face legal action from the state attorney general if their models posed a threat, such as taking control of critical infrastructure.

The bill targeted large-scale AI models that cost over $100 million to develop, which raised concerns from industry experts. Neil Chilson, head of AI policy at the Abundance Institute, told CoinChapter that the bill's scope could eventually expand to cover smaller developers as well.

"The bill is poorly drafted and could be interpreted to apply to any company using AI models, even small startups," Chilson said.

Governor Newsom mentioned that he had consulted with AI safety experts and emphasized the need for "workable guardrails" based on scientific analysis. He ordered state agencies to continue evaluating the potential risks posed by advanced AI models.

"While I am vetoing this bill today, I want to be clear that I fully support the Legislature's efforts to evaluate the risks and benefits of advanced AI models and to put in place strong safety measures," Newsom said.

Several lawmakers, including former House Speaker Nancy Pelosi, opposed SB 1047, arguing that the bill would hinder AI innovation, which is crucial to California's economy. Major tech firms also expressed concerns that the bill would limit AI development and growth.

In contrast, Elon Musk supported the bill and broader AI regulations. On Aug. 26, Musk posted on X, saying that

"California should probably pass the SB 1047 AI safety bill,"

though he acknowledged that it was a difficult decision.

Despite his veto, Newsom stressed the importance of adopting strong AI safety measures, citing that his administration had passed over 18 AI-related bills in the past 30 days.