The governor of California, Gavin Newsom, has blocked a landmark artificial intelligence safety bill that had faced strong opposition from major technology companies.
The proposed legislation would have imposed some of the first regulations on AI in the US.
Mr Newsom said the bill could stifle innovation and prompt AI developers to move out of the state.
Senator Scott Wiener, who authored the bill, said the veto allows companies to continue developing an extremely powerful technology without any government oversight.
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