On Sunday, Gavin Newsom vetoed SB 1047, the high-profile AI bill whose early versions would establish a new government agency to enforce a compliance scheme on developers of “covered models” — those that used 10^26 or 10^25 floating point operations (FLOPs) for training or fine tuning, respectively — under threat of perjury.

Critics of the bill, which included Silicon Valley venture capitalists, California startup founders, AI policy wonks, academics, and a bi-partisan set of lawmakers, argued it would stifle AI innovation and throttle California’s economy.

“[T]he bill as currently written would be ineffective, punishing of individual entrepreneurs and small businesses, and hurt California’s spirit of innovation,” Ro Khanna, the Democratic lawmaker who represents California’s 17th district, said last month in a statement condemning the bill.