⚖️ SB 53 AI Safety Bill Update

California Pushes Forward on AI Oversight

California’s state senate has passed SB 53, a new AI safety bill written by Senator Scott Wiener, sending it to Governor Gavin Newsom for approval. Unlike Wiener’s broader 2023 proposal, SB 1047, this measure narrows its focus to large AI companies generating more than $500 million in annual revenue. The bill has drawn backing from Anthropic and requires big AI developers to publish safety reports, disclose incidents, and provide employees with protected channels to report concerns.

Balancing Innovation with Accountability

The bill intentionally carves out smaller startups, a major criticism of Wiener’s earlier legislation. Lawmakers worried that sweeping rules could stifle California’s booming AI startup ecosystem. By targeting giants like OpenAI and Google DeepMind instead, SB 53 aims to hold the most powerful players accountable without slowing down innovation at the early stage. Still, questions remain about carve-outs and whether the bill’s narrower scope will complicate enforcement.

What Founders Should Watch

For startups, the most important takeaway is that this bill doesn’t apply directly to you — but it will shape your operating environment. Big players may face higher compliance costs and slower release cycles, which could open windows of opportunity for leaner competitors. At the same time, regulators are signaling where they’re headed: incident reporting, transparency, and whistleblower protections. Savvy founders can treat SB 53 as a preview of future rules, building early trust with investors and customers by adopting light-touch safety practices before they’re mandated.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more