Gov. Gavin Newsom on Friday ordered state agencies to develop safety regulations for artificial intelligence after vetoing tougher rules two years ago.

California State University’s $17 million contract with ChatGPT’s maker OpenAI is up for renewal. Some students and faculty say equal access to AI is important for preparing students for the workforce. Others the implementation of AI tools has been confusing and opens the door to cheating.

Since 2016, California enacted more AI regulations than any other state. The president’s new order against such laws worries state officials.

The company behind ChatGPT is converting to a for-profit company and settling an investigation by California’s attorney general, but the company could still exploit its charitable roots.

Most plans to regulate data centers died in the state’s Legislature this year, despite a nationwide backlash. Two surviving bills aim to promote disclosure of energy and water use.

In a major shift, Google, OpenAI, Meta and venture capitalists — many of whom had once forsworn involvement in war — have embraced the military industrial complex.

The state’s attorney general asked the company how it plans to transfer assets out of its charitable nonprofit.

The California legislation would have required tech companies to test AI for harm to society. It attracted opposition from numerous members of Congress and major AI companies including Google, Meta, and OpenAI.

Google, Meta, ChatGPT and other Silicon Valley firms have been lobbying heavily against the bill, warning it will hurt new tech growth.

The move capped a chaotic five days at the San Francisco-based artificial intelligence company.