Newsom Signs SB 53, Establishing California’s First AI Safety Regulations

California Governor Gavin Newsom has signed SB 53, also known as the Transparency in Frontier Artificial Intelligence Act, making it the first U.S. law to regulate frontier AI.

Following the developments earlier this month, the legislation seeks to balance technological innovation with public safety by introducing new requirements for developers. According to the governor’s office, the law is designed to boost transparency and safety while positioning California as a global leader in AI regulation.

Building public trust

The new law targets frontier AI models — highly advanced systems with both immense potential and significant risks. Governor Newsom characterized the measure as a set of “commonsense guardrails” designed to foster public trust in AI while ensuring innovation continues to thrive.

What SB 53 does

Transparency
Major AI developers must publish frameworks demonstrating compliance with national and international standards, ensuring their practices are visible to the public.

Innovation
The law creates CalCompute, a state-backed public computing consortium designed to advance safe and equitable AI research.

Safety
A new reporting system allows both companies and the public to flag critical AI safety incidents directly to California’s Office of Emergency Services.

Accountability
Whistleblowers who reveal serious risks tied to frontier AI models are protected under the law. Noncompliant companies face civil penalties, enforceable by the attorney general.

Responsiveness
The Department of Technology is tasked with recommending annual updates to ensure the law keeps pace with rapid technological advances and evolving international standards.

California steps in amid federal inaction

Governor Newsom called AI “the new frontier in innovation” and said California intends to lead as the technology rapidly evolves.

Senator Scott Wiener credited the Joint California AI Policy Working Group and the administration’s partnership for refining the bill, saying the collaboration helped the measure promote “trust, fairness, and accountability.”

State officials noted that SB 53 builds on a first-of-its-kind report released earlier this year and comes at a critical moment, as the federal government has yet to enact a comprehensive AI policy.

‘Trust but verify’ approach to frontier AI

Former California Supreme Court Justice Mariano-Florentino Cuéllar stated that the law reflects the transparency and “trust but verify” principles laid out in the state’s earlier AI report. He argued that as frontier breakthroughs continue, oversight must emphasize careful scientific review.

The legislation has drawn strong endorsements from academic leaders and AI companies alike. Dr. Fei-Fei Li, co-director of Stanford’s Institute for Human-Centered AI, praised SB 53 as “a step toward evidence-based policymaking.” At UC Berkeley, Jennifer Chayes, dean of the College of Computing, Data Science, and Society, joined peers in supporting the measure as a model for promoting fairness and accountability in AI development.

On the industry side, Anthropic backed the bill, arguing it strikes the right balance between competition and transparency by requiring disclosure of high-risk AI systems. The company noted it already complies with similar safeguards and emphasized that the law helps prevent competitors from cutting corners on safety to gain an advantage.

From innovation hub to governance hub

California dominates the global AI landscape, hosting 32 of the world’s 50 leading AI companies and accounting for more than 15% of U.S. job postings in the field. The Bay Area alone attracted over half of worldwide venture funding for AI startups last year, underscoring the state’s unrivaled magnetism for talent and capital.

It is also home to three of the four companies that have surpassed a $3 trillion valuation — Google, Apple, and Nvidia — all of which are heavily invested in AI. State officials argue that this concentration of industry power places California in a unique position to establish standards with global impact.

With SB 53, California is moving to align its economic dominance with regulatory leadership. State leaders hope the law will not only reinforce California’s role at the cutting edge of AI innovation but also serve as a blueprint for responsible governance as the technology continues to reshape industries worldwide.