California Governor Gavin Newsom has vetoed the controversial artificial intelligence (AI) bill, SB 1047, saying it would hinder innovation and fail to protect the public from “real” threats posed by the technology, Cointelegraph reported.

The bill would require mandatory safety testing of AI models and other safeguards that tech companies worry would stifle innovation. Newsom said the bill focuses too much on existing top AI companies and fails to protect the public from threats posed by new technologies.

SB 1047, authored by Sen. Scott Wiener, D-San Francisco, would require developers to implement an “emergency stop” feature for AI models and publish plans to address extreme risks. If enacted, AI developers could be sued by state attorneys general if they face ongoing threats.

Despite vetoing SB 1047, Newsom stressed the need to adopt adequate AI safety protocols and said regulators cannot wait until a major disaster occurs to take action to protect the public. He also mentioned that his administration has signed 18 bills on AI regulation in the past 30 days.

The bill is unpopular among lawmakers, consultants and big tech companies. House Speaker Nancy Pelosi and companies including OpenAI said the bill would significantly hinder the development of AI. Neil Chilson, head of AI policy at the Abundance Institute, warned that while the bill focuses on models costing more than $100 million, its scope could expand to hit smaller developers.

However, some are open to the bill. Billionaire Elon Musk supports the bill and said in an August 26 X post that California should probably pass SB 1047 AI safety bill, but admitted that supporting the bill was a "tough decision."