California to set AI rules
Governor Newsom signaled that California intends to set its own standards for risky AI startups rather than cede that role to federal policy — a move that could concentrate compliance‑sensitive AI operations and talent in the Bay Area. That political posture favors landlords who can market secure, governance‑ready space. (calmatters.org)
Gov. Gavin Newsom signed an executive order on March 30, 2026 directing California’s procurement apparatus to require AI vendors seeking state contracts to meet heightened safety, privacy and responsible‑use standards. (gov.ca.gov)) The order gives state agencies 120 days to produce recommended vetting processes for AI contractors and calls for new watermarking standards for AI content created or used by state officials. (tech.yahoo.com)) The executive order instructs the state Chief Information Security Officer to review any federal "supply‑chain risk" designations and issue guidance so agencies can continue procuring from companies if those federal designations are judged improper. (tech.yahoo.com)) That procurement provision was framed against the Pentagon’s recent designation of Anthropic as a supply‑chain risk, a designation that a federal judge temporarily blocked on March 26, 2026. (apnews.com)) PitchBook and regional trackers show the Bay Area captured more than half of global VC dollars for AI and machine‑learning startups in 2024, concentrating early‑stage and scaling AI firms in the region. (pitchbook.com)) California’s prior AI law, SB 53, created a public computing option called “CalCompute” and was signed into law Sept. 29, 2025; Newsom’s new order separately commits the state to expand its use of generative AI tools for delivering public services. (kqed.org)) Market research and brokerage commentary show AI firms are already driving leasing activity in San Francisco — most AI startups take sub‑10,000‑sq‑ft footprints while a handful of mega‑deals (OpenAI, Scale AI, etc.) skew averages — and brokers advise landlords to add redundant power, fiber diversity and upgraded security/TI to attract compliance‑sensitive tenants. (therealdeal.com))
