California Governor Gavin Newsom has vetoed a bill that would regulate some types of artificial intelligence development.

The bill passed the California State legislature by a majority vote. But tech giants and others are worried it could stifle AI development.

The bill would regulate generative-AI models whose estimated costs exceed 100 million dollars.

The legislation anticipates such potential risks as AI technology going out of control and wreaking havoc on infrastructure.

The legislation is the first of its kind in the United States.
It requires companies to provide their AI with full shutdown functions in case of emergencies, as well as to conduct pre-service safety tests.

Vetoing the bill on Sunday, Newsom said it "applies stringent standards to even the most basic functions so long as a large system deploys it."

He also said, "I do not believe this is the best approach to protecting the public from real threats posed by the technology."

The governor plans to work with industry experts to discuss how to regulate powerful AI systems.