California Governor Gavin Newsom has signed a new law designed to set up guardrails around the development of artificial intelligence across the state.

Known as the Transparency in Frontier Artificial Intelligence Act, or SB 53, the law creates a mechanism for companies to report critical safety incidents to California's Office of Emergency Services, protects whistleblowers who warn of the potential dangers of the technology, and creates a consortium to advance and deploy ethical and equitable AI tech. This came after a group of AI experts and academics commissioned by Newsom released a report in early 2025, which included recommendations for AI-focused policymaking that would help establish "sensible guardrails."

"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 that builds public trust as this emerging technology rapidly evolves," Newsom said in a September 29 release announcing his signing of SB 53. 

According to Newsom's office, California is home to 32 of the top 50 AI companies globally — including Open AI, Anthropic, Google, Meta and Apple — and holds the largest share of AI job postings of any state. In 2024, more than half of global venture capital funding for AI and machine learning startups also went to companies in the Bay Area. 

The tech sector has long pushed back against state governments seeking to regulate AI. In late-August, a group of Silicon Valley corporations and investors vowed to pour up to $200 million into a pair of new super PACs designed to force out politicians who aren't supportive of AI advancements. Meta also lobbied heavily against SB 53 while it was under consideration in the state legislature, with the tech giant claiming at the time that it would "stifle innovation, block AI progress and put California's technology leadership at risk."