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California Governor Gavin Newsom on Sunday vetoed an AI safety bill that targeted OpenAI, Google, and the many large AI companies based in the region.
The Golden State is home to 32 of the top 50 AI companies, Newsom says in his veto message, citing a Forbes list. Focusing on companies that have reached a certain size could stifle innovation while leaving the threats presented by smaller models unaddressed, he says.
"By focusing only on the most expensive and large-scale models, [bill] SB 1047 establishes a regulatory framework that could give the public a false sense of security about controlling this fast-moving technology," Newsom says. "Smaller, specialized models may emerge as equally or even more dangerous."
The bill would have required large companies to “perform basic safety testing on massively powerful AI models," says California State Sen. Scott Wiener, the bill's sponsor. Startups were not covered by the bill.
Newsom argues the bill does not "keep pace with the technology [and is] not informed by an empirical trajectory analysis of Al systems and capabilities."
Wiener says it was "crafted by some of the leading AI minds on the planet" and notes that it's "supported by both of the top two most cited AI researchers of all time: the 'Godfathers of AI,' Geoffrey Hinton and Yoshua Bengio." Plus, "tech workers are even more likely than members of the general public to support the bill."
"This veto leaves us with the troubling reality that companies aiming to create an extremely powerful technology face no binding restrictions from US policymakers, particularly given Congress’s continuing paralysis around regulating the tech industry in any meaningful way," Wiener adds.
Newsom suggested he may sign a revised version of the bill and called for safety protocols before a "major catastrophe" occurs with an AI system getting out of control. He convened a new council of experts to shape the state's approach to AI guardrails. However, advocates for the bill expressed disappointment and frustration about going back to the drawing board.
"The race to establish comprehensive AI standards is now wide open, with California unexpectedly taking a back seat," Dr. Jeanne Eicks, associate dean at The Colleges of Law, tells PCMag.
Newsom signed a slew of other AI bills this month, but SB 1047 was the most high-profile and contentious. It had the support of Elon Musk, Anthropic CEO Dario Amodei, and some Hollywood stars. But Google and Meta lobbied against it, NPR reports. OpenAI also opposed it, along with several venture capital firms, including Andreesen Horowitz. Rep. Nancy Pelosi, who represents San Franciso, also did not support the bill, citing concerns about stifling innovation.