California Governor Gavin Newsom vetoed the Sheltered Innovations for Pioneering Artificial Intelligence Models Act (SB 1047) Today. In his veto messageGovernor Newsom cited many factors in his decision, including the burden the bill would place on artificial intelligence companies, California’s leadership in the field, and criticism that the bill may be too broad.
“Despite good intentions, SB 1047 does not address whether an AI system is deployed in high-risk environments, involves critical decision-making, or uses sensitive data. Instead, the bill applies rigorous standards to even the most basic functions – provided it is implemented in a large system. I don’t think this is the best approach to protecting society from the real threats this technology poses.
Newsom writes that the bill could “give the public a false sense of security in controlling this rapidly evolving technology.”
“Smaller, specialized models may prove to be as or even more dangerous than the models targeted by SB 1047 – at the potential cost of limiting the very innovations that drive progress for the public good.”
The governor says he agrees there should be safety protocols and guardrails, as well as “clear and enforceable” consequences for bad actors. However, he says he does not believe the state should “agree to a solution that is not based on an empirical analysis of the trajectories of AI systems and capabilities.”
Here is the full text of the veto:
In write to XSen. Scott Wiener, the bill’s lead author, called the veto “a failure for anyone who believes in oversight of massive corporations that make critical decisions” that affect public safety and welfare and “the future of the planet.”
“This veto leaves us with the disturbing reality that companies seeking to create incredibly powerful technology face no binding constraints from U.S. policymakers, especially given Congress’ continued paralysis in regulating the tech industry in any meaningful way.”
In delayed August, SB 1047 landed on Governor Newsom’s desk and would become the strictest artificial intelligence framework in the U.S., with a September 30 deadline to sign or veto it.
It would apply to covered AI companies doing business in California based on a model that costs more than $100 million to train or more than $10 million to fine-tune, adding requirements that developers implement safeguards such as a “kill switch” and develop testing protocols to reduce the risk of catastrophic events such as a cyberattack or pandemic. The text also establishes whistleblower protections for reporting violations and allows AG to pursue claims for damages caused by security incidents.
Changes since its introduction included removing a proposal to create a novel regulatory agency and giving the attorney general the power to sue developers for potential incidents before they occur. Most companies covered by this law opposed the law, although some muted their criticism after the changes.
In a letter to the bill’s author, Senator Wiener, OpenAI Chief Strategy Officer Jason Kwon said that SB 1047 would sluggish progress and that the federal government should instead address artificial intelligence regulation. Meanwhile, Anthropic CEO Dario Amodei he wrote to the voivode after amending the bill, listing its perceived advantages and disadvantages and stating: “…new SB 1047 has been significantly improved to the point that we believe the benefits likely outweigh the costs.”
Chamber of Progress, a coalition representing Amazon, Meta and Google, he similarly warned the law “would inhibit innovation.”
Meta’s public affairs manager, Jamie Radice, emailed Meta’s statement on the veto to Edge: :
“We are pleased that Governor Newsom vetoed SB1047. This bill would stifle AI innovation, harm business growth and job creation, and break the state’s long tradition of supporting open source software development. We support responsible regulation of AI and remain committed to working with lawmakers to promote better approaches.”
Opponents of the bill include former House Speaker Nancy Pelosi, San Francisco Mayor London Breed and eight Democrats in Congress from California. On the other side, there were vocal supporters Elon Muskprominent Hollywood names such as Mark Hamill, Alyssa Milano, Shonda Rhimes and JJ Abrams, as well as labor unions including SAG-AFTRA and SEIU.
The federal government is also considering ways to regulate artificial intelligence. In May, the Senate proposed a $32 billion action plan that covers several areas lawmakers should look at, including the impact of artificial intelligence on elections, national security, copyrighted content and more.
