The ink was barely dry on Donald Trump’s artificial intelligence executive order when Gavin Newsom came out swinging. Just hours after the order went public Thursday evening, the California governor issued a statement saying the presidential dictum, which seeks to block states from regulating AI of their own accord, advances “grift and corruption” instead of innovation.
“President Trump and David Sacks aren’t making policy – they’re running a con,” Newsom said, referencing Trump’s AI adviser and crypto “czar”. “Every day, they push the limits to see how far they can take it.”
Trump’s executive order is a major victory for tech companies that have campaigned against legislative barriers to developing and deploying their AI products. It also sets up a clash between state governments and the White House over the future of AI regulation. The immediate backlash from groups including child safety organizations, unions and state officials has highlighted the deeply contentious nature of the order and diverse range of interests it affects.
Several officials and organizations have already questioned the legality of the executive order, stating that Trump does not have the power to undermine state legislation on AI and denouncing the decree as the result of tech industry lobbying. California, home to some of the world’s most prominent AI companies and one of the most active states legislating AI, has been a locus for pushback against the order.
“This executive order is deeply misguided, wildly corrupt, and will actually hinder innovation and weaken public trust in the long run,” California Democratic representative Sara Jacobs said in a statement. “We will explore all avenues – from the courts to Congress – to reverse this decision.”
After a draft version of Trump’s order leaked in November, state attorney general Rob Bonta said that his office would “take steps to examine the legality or potential illegality of such an executive order”, teeing up a precedent-setting duel between California and the White House.
Legislative loggerheads
In September, Newsom signed a landmark AI law that would compel developers of large, powerful AI models known as “frontier models” to provide transparency reports and promptly report safety incidents or face fines up to $1m. The governor touted the Transparency in Frontier Artificial Intelligence act as an example for how to regulate AI companies nationwide.
“Our state’s status as a global leader in technology allows us a unique opportunity to provide a blueprint for well-balanced AI policies beyond our borders,” Newsom said in an address to the California state senate. “Especially in the absence of a comprehensive federal AI policy framework and national AI safety standards.”
The September bill and more California legislation could be in Trump’s crosshairs. Thursday’s executive order calls for an AI litigation taskforce that would review state laws that do not…
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