The governor of California Gavin Newsom has blocked a landmark artificial intelligence (AI) safety bill, which had faced strong opposition from major technology companies.
The legislation would have imposed some of the first regulations on AI in the US.
Mr Newsom said the bill could stifle innovation and prompt AI developers to move out of the state.
Senator Scott Wiener, who authored the bill, said the veto allows companies to continue developing an “extremely powerful technology” without any government oversight.
The bill would have required the most advanced AI models to undergo safety testing.
It would have forced developers to ensure their technology included a so-called “kill switch”. A kill switch would allow organisations to isolate and effectively switch off AI systems if they were they became a threat.
It would also have made official oversight compulsory for the development of so-called “Frontier Models” – or the most powerful AI systems.
In his statement, Mr Newsom said the bill “does not take into account whether an Al system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data.”
“Instead, the bill applies stringent standards to even the most basic functions – so long as a large system deploys it,” he added.
California is home to many of the world’s largest and most advanced AI companies, including the ChatGPT maker, OpenAI.