California fights back as tech giants seek to overrule state AI laws

Sacramento, California – A coalition of powerful tech companies, including OpenAI, Meta, Google, and IBM, is mounting a coordinated effort to push the federal government to override state-level efforts to regulate artificial intelligence. As California and other states develop increasingly aggressive AI legislation, these companies are lobbying Washington to pass a national law that would block stricter state rules and give them more favorable regulatory terms.

The move marks a rare moment when Big Tech is actively advocating for federal regulation—but with a strategic twist. Rather than seeking strict oversight, the industry wants a lighter-touch national framework that would preempt tougher rules being drafted in statehouses across the country, particularly in Sacramento. Also backing this campaign is venture capital giant Andreessen Horowitz, which has close ties to former President Donald Trump and strong influence in Republican political circles.

California legislators, long at the forefront of tech oversight, are alarmed. State Sen. Scott Wiener, a leading voice on AI regulation, warned that Washington lawmakers—especially under Republican leadership—might be poised to pass weak rules designed to shield tech giants. Wiener’s AI safety bill narrowly failed last year following heavy industry lobbying but is expected to return in a more moderate form this year, including whistleblower protections and basic AI model oversight.

Meanwhile, other California lawmakers, like Sen. Josh Becker, are pressing ahead with proposals targeting AI’s effects on children and user privacy. Becker argues that California has the “opportunity and responsibility” to lead the nation in AI policy, noting the state’s past success in setting nationwide standards on tech issues like privacy.

But with AI regulation gaining steam in states like Colorado, New York, and Connecticut, the tech industry is sounding the alarm over a “patchwork” of conflicting rules. Tech lobbyists have begun holding strategy sessions to unify companies around a national approach. Yet insiders admit there’s no consensus within the industry on what that federal law should look like.

At the center of the Washington conversation is the issue of preemption—whether federal law should nullify state rules. While some industry leaders warn that aggressive federal action could backfire, others are betting that national security concerns, especially AI’s role in the U.S.-China tech rivalry, will help sway lawmakers.

Sen. Ted Cruz and other Republican leaders are preparing a “light-touch” federal bill to create regulatory sandboxes for AI development. The White House is expected to release an AI Action Plan by July, which tech lobbyists see as a pivotal moment to shape national policy and neutralize California’s influence in the process.