California Governor Gavin Newsom has just signed SB 53 into law, the first legislation in the U.S. to require major AI labs to be transparent about their safety and security protocols, especially in preventing models from being exploited for cyberattacks or creating bioweapons.
The law grants the California Office of Emergency Services (OES) the authority to oversee and compel companies to adhere to their published safety procedures. Violations could lead to administrative penalties or the revocation of their license to operate AI.
Adam Billen, Vice President of Public Policy at Encode AI, called it a breakthrough that balances innovation and safety,proving that “regulation doesn’t necessarily stifle creativity.”
Billen noted that while most companies already have safety testing processes and release model cards, some “loosen standards” due to competitive pressure, making laws like SB 53 necessary to ensure safety commitments are not bypassed for profit.
SB 53 is considered a “lighter” version of SB 1047, a bill Newsom vetoed in 2024 for being too restrictive for businesses.This time, SB 53 achieved a rare consensus between lawmakers and the tech industry.
However, the Silicon Valley tech world remains cautious: Meta, Andreessen Horowitz, and figures like Greg Brockman (OpenAI) are pouring hundreds of millions of dollars into super PACs to support “pro-AI” politicians and oppose state-level laws.
These groups had previously lobbied for a 10-year moratorium on AI regulation, but Encode AI formed a coalition of over 200 organizations to defeat that proposal. Nevertheless, Senator Ted Cruz is now pushing the SANDBOX Act, which would allow AI companies to apply for a 10-year exemption from federal regulations—a move Billen believes would eliminate the role of states in tech governance.
Billen emphasized: “If you really want the US to beat China in the AI race, focus on chip export controls and the supply chain—not on killing state-level laws.”
Laws like the CHIP Security Act and the CHIPS and Science Act are attempting to prevent advanced AI chips from leaking to China, but Nvidia and OpenAI have expressed concerns about the economic impact. The Trump administration also made contradictory moves, expanding the export ban while allowing chip sales in exchange for a 15% share of revenue.
Billen concluded that SB 53 demonstrates the vitality of American democracy and federalism—even if it’s “ugly and messy,” it represents the collaborative process between the state and businesses to strike a balance between creative freedom and social safety.
📌 Summary: California’s new AI safety law marks a historic milestone, making it the first state to compel AI labs to disclose their safety procedures and submit to real-world oversight. While the tech industry fears being “tied down, innovation.
