Gavin Newsom Signs SB 53 Into Law – Cracking Down on California’s AI Industry as Critics Warn of Innovation Exodus

By
Samuel Lopez
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What’s Next

  • SB 53 is now operative law; rulemaking by the Government Operations Agency will determine compliance deadlines.
  • Industry stakeholders are already signaling potential legal challenges, likely focused on trade secret disclosure and due process.
  • Watch for AI companies to announce new headquarters or data-center expansions in Texas, Tennessee, and Florida—jurisdictions eager to lure AI capital away from California.

Sources

  • California Governor’s Office Press Release (Sept. 29, 2025)
  • Text of SB 53, Transparency in Frontier Artificial Intelligence Act
  • California Uniform Trade Secrets Act, Cal. Civ. Code §§ 3426–3426.11
  • S. Constitution (Takings Clause, Due Process Clause, Contracts Clause, Non-Delegation Doctrine)