Image by Gerd Altmann from Pixabay
What you need to know: Ignore the noise from Republicans: California is the birthplace of tech and the industry continues to thrive in California, and California leaders know how to balance its growth while protecting public safety.
September 18, 2025 - SAN FRANCISCO — Today, instead of fixing the issues actually impacting American families, Republicans are holding a ridiculous hearing focusing on the “Californication” of AI. Californication of AI? If we’re talking about breeding talent and innovation, we say bring it on.
California is the fourth-largest economy in the world, the birthplace of tech, and the top pipeline for tech talent.
“Members of Congress have proven themselves to be impotent in effective leadership, and are not equipped to advance our interests in tech. They should probably sit this one out.”
Governor Gavin Newsom
While Republicans run in fear from the so-called “Californication of AI,” tech leaders are praising California’s significance as an AI and tech leader.
On California’s business environment:
Ron Conway, Founder, SV Angel: “California’s business environment has helped the tech industry thrive and SV Angel is proud to be a California investment firm.”
On California’s hotbed of talent:
Chris Larsen, executive chair, Ripple: “California consistently draws the best technology talent in the world. It’s why we started here and why we continue to grow here.”
Referring to the recent nonsensical remarks by Senator Ted Cruz:
Jason Wheeler (former CFO of Tesla): “Ted Cruz is all hat and no cattle — he should immediately exit this conversation and head back to Cancun. California’s tech environment built the AI industry and continues to create and shape the best in our business. We don’t need intervention from dinosaurs in Congress.”
On California’s startup environment:
Asheesh Birla, Tech investor and entrepreneur: “The AI revolution is happening in California. For investors like myself, capitalizing on tomorrow’s AI unicorns starts with investing in today’s California startups.”
Facts
- California is home to 33 of the top 50 privately held AI companies around the globe and leads with a quarter of all AI patents, conference papers, and companies.
- The Bay Area captured a majority of U.S. AI startup funding in the past year. From Q3 2024 to Q2 2025, the Bay Area attracted 51% of ALL U.S. AI startup funding on Carta’s platform — far ahead of the entire state of New York (11%) and Boston (5.5%).
- California leads U.S. demand for AI talent. In 2024, 15.7% of all U.S. AI job postings were in California — #1 by state, well ahead of Texas (8.8% and New York (5.8%), per the 2025 Stanford AI Index.
- In 2024, more than half of global VC funding for AI and machine learning startups went to companies in the Bay Area.
- California is home to three of the four companies that have passed the $3 trillion valuation mark. Each of these California-based companies — Google, Apple, and Nvidia — are tech companies involved in AI and have created hundreds of thousands of jobs.
Birthplace of modern tech
California works closely to foster tech leadership and create an environment where industry and talent thrive. Hear it directly from them:
California is the global leader in technology and is balancing its work to advance AI with commonsense laws to protect the public, while also embracing the technology to make our lives easier and make government more efficient, effective, and transparent. In their efforts to feign themselves as leader in this space, Republicans are threatening to preempt state laws that protect the public, including important safeguards in place that protect California families. California currently has laws that crack down on sexually explicit deepfakes and require AI watermarking, protect performers’ digital likenesses, protect consumers by preventing scams from AI-generated robocalls, and combat deepfake election content.
California’s tech leadership
The Trump administration and congressional Republicans have proven themselves behind and clueless when it comes to AI, and giving them sole control over AI’s implementation would be disastrous. Trump and his cronies are too busy making corrupt deals and others to actually turn their attention to protecting the public and creating jobs.
Meanwhile, Governor Newsom has been more out front on advancing AI than any other state governor:
- Signing an executive order laying out California’s approach to AI adoption, including directing the development of innovative new procurement mechanisms, AI sandboxes to pilot the technology, strengthened cybersecurity, and new guidelines to ensure safe and ethical use.
- Commissioning a report from world-leading AI academics and experts to help advance the responsible use of AI.
- Partnering with executive and tech leaders to help incorporate efficiencies, including AI, into state government.
- Implemented AI projects to utilize GenAI to reduce highway congestion, improve roadway safety, and enhance customer service in a state call center, among other new initiatives.
- Leveraging partnerships with Nvidia, Google, Adobe, IBM, and Microsoft to help prepare the current and future generation to lead an AI-ready workforce, including expanding access to over two million students in public high schools and universities across California, including community colleges and California State Universities.
California is the nation’s tech leader so it’s no surprise we’re the main topic of conversation but, to our red state friends…
