AsianFin -- California Governor Gavin Newsom has signed SB 53, a first-of-its-kind law that imposes new transparency requirements on major AI companies.

Passed by the state legislature two weeks ago, the bill targets large AI labs, including OpenAI, Anthropic, Meta, and Google DeepMind, mandating disclosure of safety protocols and offering whistleblower protections for employees.

SB 53 also establishes a mechanism for AI firms and the public to report potential critical safety incidents to California’s Office of Emergency Services. Companies must report incidents involving crimes committed without human oversight, such as cyberattacks, as well as deceptive behavior by AI models—requirements not included under the EU AI Act.

The legislation has drawn mixed reactions from the AI industry. While Anthropic endorsed the bill, Meta and OpenAI lobbied against it, with OpenAI even publishing an open letter urging Governor Newsom not to sign SB 53. Critics warn that state-level AI regulation could create a “patchwork” of rules that may stifle innovation.