On 6 November 2025, Gavin Newsom vetoed California’s Senate Bill 1064, which would have required companion‑chatbot operators to prevent systems from encouraging self‑harm in minors and to implement mandatory disclosure that users are interacting with AI. The decision came after lobbying by major tech firms threatening to relocate operations. Child‑safety advocates say the veto shifts regulatory focus back to ballot initiatives, while companies argue overly prescriptive rules could hamper innovation. The episode underscores the regulatory tug‑of‑war at the intersection of AI safety and business growth.