California Gov. Gavin Newsom has signed SB 53, a first-in-the-nation bill that sets new transparency requirements on large AI companies.
SB 53, which passed the state legislature two weeks ago, requires large AI labs — including OpenAI, Anthropic, Meta, and Google DeepMind — to be transparent about safety protocols. It also ensures whistleblower protections for employees at those companies.
In addition, SB 53 creates a mechanism for AI companies and the public to report potential critical safety incidents to California’s Office of Emergency Services. Companies also have to report incidents related to crimes committed without human oversight, such as cyberattacks, and deceptive behavior by a model that isn’t required under the EU AI Act.
The bill has received mixed reactions from the AI industry. Tech firms have broadly argued that state-level AI policy risks creating a “patchwork of regulation” that would hinder innovation, although Anthropic endorsed the bill. Meta and OpenAI lobbied against it. OpenAI even wrote and published an open letter to Gov. Newsom that discouraged his signing of SB 53.
The new bill comes as some of Silicon Valley’s tech elite have poured hundreds of millions into super PACs to back candidates that support a light-touch approach to AI regulation. Leaders at OpenAI and Meta have in recent weeks launched pro-AI super PACs that aim to back candidates and bills that are friendly to AI.
Still, other states might look to California for inspiration as they attempt to curb the potential harms caused by the unmitigated advancement of such a powerful emerging technology. In New York, a similar bill was passed by state lawmakers and is awaiting Gov. Kathy Hochul’s signature or veto.
“California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive,” Newsom said in a statement. “This legislation strikes that balance. AI is the new frontier in innovation, and California is not only here for it – but stands strong as a national leader by enacting the first-in-the-nation frontier AI safety legislation that builds public trust as this emerging technology rapidly evolves.”
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The governor is also weighing another bill – SB 243 – that passed both the State Assembly and Senate with bipartisan support this month. The bill would regulate AI companion chatbots, requiring operators to implement safety protocols, and hold them legally accountable if their bots fail to meet those standards.
SB 53 is Senator Scott Wiener’s second attempt at an AI safety bill after Newsom vetoed his more sweeping SB 1047 last year amid major pushback from AI companies. With this bill, Wiener reached out to major AI companies to attempt to help them understand the changes he made to the bill.
