Why California’s SB 53 Might Provide a Meaningful Check on Big AI Companies
California is once again in the spotlight of AI regulation. Why California’s SB 53 might provide a meaningful check on big AI companies is now a key question as the state senate approved the bill, sending it to Governor Gavin Newsom’s desk for signature or veto.
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Unlike last year’s SB 1047, which Newsom rejected, SB 53 takes a narrower, more targeted approach. It specifically applies to large AI companies generating more than $500 million in annual revenue—an intentional move to hold the most powerful AI players accountable.
What Makes SB 53 Different?
State senator Scott Wiener drafted SB 53 with lessons learned from the failure of SB 1047. The earlier proposal faced major pushback, but this new version zeroes in on the giants of the industry.
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Applies only to big AI companies with massive revenue.
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Mandates safety reporting for AI models.
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Requires disclosure of incidents directly to the government.
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Protects whistleblowers, giving employees safe channels to report concerns despite NDAs.
This sharper focus could give SB 53 a real chance of becoming law. Even more telling, major AI company Anthropic has endorsed the bill, signaling that industry leaders see its value.
Why California’s SB 53 Matters
AI companies are quickly becoming some of the most powerful corporations in the world. Without meaningful regulation, their growth may outpace accountability.
SB 53 doesn’t aim to halt innovation—it aims to make safety and transparency a baseline requirement. By introducing government oversight and worker protections, it creates one of the first substantial checks on corporate AI power at the state level.
As podcast co-host Max Zeff put it during a discussion on TechCrunch’s Equity:
“We’re entering this era where AI companies are becoming the most powerful companies in the world, and this is going to be potentially one of the few checks on their power.”
What’s Next for AI Regulation?
Governor Gavin Newsom’s decision will determine if SB 53 becomes a landmark law. If signed, it could set the stage for similar legislation across other states—and possibly influence federal conversations around AI governance.
For now, the question isn’t just whether SB 53 will pass. It’s whether this bill marks the beginning of a new era where AI companies face real accountability.
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