On September 29th, Governor Newsom vetoed SB 1047, a controversial bill aimed at heading off catastrophic risks of large AI models. We previously covered the bill on The Dynamist in episode 64. In a statement, Newsom cited the bill’s “stringent standards to even the most basic functions” and said he does “not believe this is the best approach to protecting the public from real threats posed by the technology.” Senator Scott Wiener, the bill’s author, responded, “This veto leaves us with the troubling reality that companies aiming to create an extremely powerful technology face no binding restrictions from U.S. policymakers[.]”

The bill had passed the California senate back in August by a vote of 30-9, having been the subject of fierce debate between AI companies big and small and researchers and advocates who fear a catastrophic AI event. Proponents want to get ahead of AI cyberattacks, AI weapons development, or doomsday scenarios by making developers liable to implement safety protocols.  Opponents argue that the bill will stifle innovation in California, calling it an “assault on open source” and a “harm to the budding AI ecosystem.”

Aside from the merits of the legislation, it is arguably the first major political fight over AI in the U.S. where competing interests fought all the way to the governor’s desk, attempting to sway the pen of Governor Newsom. The story featured a cast of characters from California Democrats like Nancy Pelosi to  billionaires like Elon Musk to major companies like Google and OpenAI. What does this battle say about who holds sway in emerging AI politics? What are the factions and alignments? And what does this all mean for next year in California and beyond?

Evan is joined by Sam Hammond, Senior Economist at FAI and author of the Substack Second Best, and Dean Ball, a research fellow at the Mercatus Center, author of the Substack Hyperdimensional, and a non-resident fellow at FAI.