On Monday, Governor Gavin Newsom (D-Calif.) signed a landmark law requiring artificial intelligence giants such as OpenAI, Alphabet Inc.'s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Meta Platforms, Inc. (NASDAQ: META) and Nvidia Corporation (NASDAQ: NVDA) to disclose how they plan to prevent their most advanced models from causing potential catastrophic risks.<h2 id="cv871ksf">California Takes Lead On AI Regulation</h2>Newsom described the new law, SB 53, as a critical step in ensuring that AI innovation thrives while protecting public safety.&#34;California has proven that we can establish regulations to protect our communities while also ensuring that the growing AI industry continues to thrive,&#34; he said in a press release.&#34;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,&#34; the statement read.Newsom's office called the law a potential model for the rest of the U.S. If Congress enacts national standards, California lawmakers are expected to align state rules while maintaining the &#34;high bar established by SB 53,&#34; noted Reuters.<h2 id="ieujbpws">What The Law Requires</h2>SB 53 applies to AI companies with annual revenues exceeding $500 million.These firms must conduct public risk assessments, detailing how their technology could spiral out of human control or be misused to create bioweapons.Violations carry penalties of up to $1 million.The law comes after Newsom vetoed an earlier bill that sought annual third-party audits of companies investing more than $100 million in AI models.That proposal faced heavy industry pushback over the potential compliance burden.<h2 id="9j5butn1f">Industry Pushes Back On Patchwork Rules</h2>Jack Clark, co-founder of Anthropic, welcomed the move, saying, &#34;Anthropic is proud to have supported this bill.&#34;Sen. Scott Wiener (D-Calif.) supported the bill and took to X, formerly Twitter to say, &#34;It's an exciting step for responsible scaling of AI innovation.&#34;However, Collin McCune, head of government affairs at Andreessen Horowitz, warned that SB 53 risks creating &#34;a patchwork of 50 compliance regimes that startups don’t have the resources to navigate.&#34;<h2 id="jpu8iqosc">Global Context: AI Rules Take Shape Worldwide</h2>California's law follows similar efforts abroad. The EU's AI Act also imposes strict requirements on high-risk systems, from risk assessments to bias controls.Meanwhile, China has called for a global body to coordinate AI governance, highlighting the fragmented state of international rules.

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California Governor Gavin Newsom has signed SB 53, a law requiring AI companies like Google, Meta, and Nvidia to disclose risk assessments for their advanced models to prevent catastrophic risks. The law targets firms with revenues over $500 million and imposes penalties for violations. Newsom emphasized the balance between AI innovation and public safety, positioning California as a leader in AI regulation. The law may serve as a model for national standards, amid concerns about creating a complex compliance landscape for startups.

- California Governor Gavin Newsom signed SB 53, a law requiring AI companies with revenues over $500 million to disclose risk assessments for their advanced models.  
- The law aims to balance AI innovation with public safety and could serve as a model for national standards, despite concerns about creating a complex compliance landscape for startups.  
- Similar regulations are emerging globally, with the EU's AI Act imposing strict requirements and China advocating for coordinated governance.  

Gavin Newsom Says He's Signing A Law To Install 'Common-Sense Guardrails' For AI Safety: What This Means For Google, Meta And Nvidia