California’s state legislature has taken a historic step to regulate artificial intelligence (AI). That didn’t stop them from recently providing final approval to SB 53 (Senate Bill 53). State Senator Scott Wiener, who represents San Francisco, was the author of this bill. Now, it sits with California’s Governor Gavin Newsom, waiting for him to either sign it into law or veto the bill. SB 53 focuses on generative AI developers making more than $500 million from their generators. While this legislation isn’t perfect, it is a historical acknowledgment that society is waking up to the dangers of AI technologies.
Still, the passage of SB 53 is a significant new step towards California prioritizing civil rights in the rollout of AI technology. In fact, just last year Governor Newsom vetoed a similar bill, SB 1047, authored by Wiener. SB 53 is much more limited in scope. It would only apply to the bigger companies. The bill has provisions meant to address worries about damaging the startup ecosystem. Those of us hoping for a thoughtful approach to AI regulation have reason to feel encouraged by this focused approach. It’s that narrow focus that Max thinks increases the likelihood of SB 53 making it law.
The bill would create the most robust regulations in the world for these emerging AI labs. It’s an effort to address growing worries over the ethical implications and safety risks that fuel AI technologies. California is an undisputed national leader in AI innovation. The imposition of these new regulations represents an inflection point in the long-standing discourse regarding the responsibilities that technology developers possess. Support from big industry players such as the AI company Anthropic fortifies the bill’s standing. This support underscores the urgent demand for thoughtful AI innovation.
Large AI companies were a common thread at a special TechCrunch event held in San Francisco from Oct 27-29, ’25. They highlighted the critical role that nurturing innovation from startups plays in their markets. Many of the stakeholders who called for SB 1047’s passage were concerned that legislation like it would stifle small businesses and new technologies. SB 53’s more limited scope though is a huge tactical win. It seeks to strike the appropriate balance in regulation while still cultivating a dynamic entrepreneurial climate here in California.
Wiener’s approach would increase accountability among large AI developers, but it would provide space for smaller companies to develop and foster innovation. As written, SB 53 only targets the large firms with the financial resources and market influence. We hope its purpose will be to protect society from potential harms from unregulated AI systems. This method could serve as a model for other states grappling with similar issues as they seek to navigate the complexities of rapid technological advancement.
However, as the technology landscape continues to expand each day in profound ways, the implications of SB 53 reach much farther than California’s borders. Instead, the state is placing limits on the development of AI. Such a step would lead the way for other states to do the same, leading lawmakers around the country to confront the dangers posed by AI technologies. The results of Governor Newsom’s groundbreaking decision will be watched closely by industry leaders, policymakers, and advocates on all sides.