Governor Newsom indicators SB 53, advancing California’s world-leading synthetic intelligence {industry}

California’s AI dominance

California continues to dominate the AI sector. In addition to being the birthplace of AI, the state is house to 32 of the 50 top AI companies worldwide. California leads U.S. demand for AI expertise. In 2024, 15.7% of all U.S. AI job postings have been in California — #1 by state, properly forward of Texas (8.8% and New York (5.8%), per the 2025 Stanford AI Index. In 2024, more than half of worldwide VC funding for AI and machine studying startups went to firms within the Bay Area. California can be house to a few of the 4 firms which have handed the $3 trillion valuation mark. Each of those California-based firms — Google, Apple, and Nvidia — are tech firms concerned in AI and have created lots of of hundreds of jobs.

What the regulation does:

SB 53 establishes new necessities for frontier AI builders creating stronger:

✅ Transparency: Requires giant frontier builders to publicly publish a framework on its web site describing how the corporate has included nationwide requirements, worldwide requirements, and industry-consensus greatest practices into its frontier AI framework.

✅ Innovation: Establishes a brand new consortium inside the Government Operations Agency to develop a framework for making a public computing cluster. The consortium, referred to as CalCompute, will advance the event and deployment of synthetic intelligence that’s secure, moral, equitable, and sustainable by fostering analysis and innovation.

✅ Safety: Creates a brand new mechanism for frontier AI firms and the general public to report potential crucial security incidents to California’s Office of Emergency Services.

✅ Accountability: Protects whistleblowers who disclose important well being and security dangers posed by frontier fashions, and creates a civil penalty for noncompliance, enforceable by the Attorney General’s workplace.

✅ Responsiveness: Directs the California Department of Technology to yearly advocate applicable updates to the regulation based mostly on multistakeholder enter, technological developments, and worldwide requirements. 

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