Newsom cozies up to AI chip giant Nvidia

Presented by America's Fuel: Inside the Golden State political arena

Aug 09, 2024 View in browser   By Lara Korte and Dustin Gardiner Presented by America's Fuel A new California partnership with Nvidia aims to shore up the workforce dedicated to AI as well as train educators. | Jeff Chiu/AP ‘KILL BILL’ CONTEST ALERT! GUESS WHICH BILLS WON’T SURVIVE, WIN PRIZES — It’s almost that time of year again, when California lawmakers run through hundreds of bills in quick succession and announce which will (and won’t) advance from the Appropriations committees to the floor. Now’s your chance to make predictions and compete against your fellow politicos — and the Playbook authors — to guess which bills won’t survive the dreaded “suspense file.” Those with the most accurate guesses will receive a shout-out in California Playbook and some extra special swag. Remember to leave your name and email with your prediction so we can contact you if you win. THE BUZZ: IF YOU BUILD IT, THEY WILL STAY — California is leaning into the AI boom, today announcing a partnership with semiconductor giant Nvidia to ramp up training for the state’s workers, educators and students. The agreement, scooped by your Playbook anchor this morning, is the first of its kind in the nation — part of Gov. Gavin Newsom’s broader push for the state to embrace artificial intelligence and maintain California’s reputation as a hub of tech innovation. But it also comes amid a federal investigation into Nvidia on antitrust grounds over its acquisition of an Israeli AI startup. Last year, Newsom issued an executive order to study how the state can use AI while also mitigating its potential risks — a critical balancing act as Silicon Valley looks to forge ahead with development while some tech-cautious groups are pressing lawmakers to help pump the brakes. Newsom, a longtime innovation evangelist, has not yet weighed in on a controversial bill in the state legislature that would require safety testing for the largest AI models, a proposal that as we’ve reported this week has now received national attention and has tech scions worrying it will squelch the burgeoning industry in its infancy. In his State of the State address in June, Newsom touted Nvidia by name, praising the company for nurturing a startup ecosystem and calling AI “the fourth industrial revolution.” His memorandum of understanding with the company — which plays an essential role in the advancement of AI through its chips — is the clearest signal yet on the governor’s thinking. The agreement also bolsters California’s tech bona fides at a time when some high-profile tech companies and figures — most frequently, Tesla CEO Elon Musk — are threatening to leave the state. Amy Tong, secretary of government operations for the state, said the Nvidia pact helps sustain California’s dominance in the tech sector. “Anything that shows that California is invested in the workforce, it's a good message to the employers to think about, where do you find talent,” she said. The MOU aims to both shore up the workforce in California dedicated to AI as well as train educators on how to apply the technology across different disciplines, from health care to agriculture. Through the agreement, Nvidia will work with the state and its community colleges to craft curriculum, design AI laboratories and workshops, and promote the use of AI across the state. The rapid acceleration of AI has created a skills gap in the workforce, said Louis Stewart, head of strategic initiatives for the developer ecosystem at Nvidia. In addition to California, the company is considering similar workforce-development initiatives in other states. “Absolutely there's folks that are feeling a little left behind,” Stewart said. “And we’ve got to make sure that everybody feels like they can participate in what's next.” There could be more coming down the pike in California, too. The Newsom administration said it will aim to launch similar initiatives with the University of California and California State University systems, and that there could be additional partnerships with other tech companies in the future. GOOD MORNING. Happy Friday. Thanks for waking up with Playbook. You can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte. WHERE’S GAVIN? Nothing official announced.   A message from America's Fuel: E15 can help California slash tailpipe and climate emissions—but only if the fuel is available. Today, 49 states allow sales of E15 made with 15% renewable biofuel. Will California be next? Learn how adding E15 in California can fuel a greener, cleaner future. Click here to explore.   NEWSOMLAND Gavin Newsom is threatening to cut off money to counties he believes are too sluggish in getting people off the street. | Jae C. Hong/AP Photo SHOW ME THE RECEIPTS — Newsom hit the throttle on his pressure campaign for local governments to address homeless encampments on Thursday, issuing his most direct threat so far that he’ll cut off money to counties he believes are too sluggish in getting people off the street, Melanie Mason reports. Though counties writ large were the target of his broadside, Newsom’s ire was not-so-subtly aimed at one in particular: Los Angeles. The city has become the epicenter of the state’s homelessness crisis and its Board of Supervisors gave an ice-cold reception to Newsom’s recent executive order, which aimed to spur cities and counties to more aggressively clean up encampments. “If we don't see demonstrable results, I'll start to redirect money,” Newsom told reporters assembled at the site of a recently cleared encampment on state-owned land in the San Fernando Valley, adding, “I'll be candid with you. This is more broadly an indictment of counties … counties need to do more.” He continued: “We're here with our hands out. Open hands, not a closed fist. That said, if we don't see results, we're going to change our approach.” His comments mark the latest escalation of his assertive tone on homeless encampments in California, prompted by the recent Supreme Court ruling that freed local governments to enforce anti-camping laws, including through fines, citations or jail time. The decision has increased the political pressure on all of the state’s officials, from Newsom on down, to address what he called “the biggest scar on the reputation of the state of California.” “We're done with excuses. And the last big excuse was ‘well, the courts are saying we can't do it.’ Well, that's no longer the case,” Newsom said. “So we had a simple executive order. Do your job. No more excuses.”   During unprecedented times, POLITICO Pro Analysis gives you the insights you need to focus your policy strategy. Live briefings, policy trackers, and and people intelligence secures your seat at the table. Learn more.     STATE CAPITOL State Sen. Marie Alvarado-Gil argued Democrats’ control in Sacramento is not working for the state. | Rich Pedroncelli/AP Photo SWITCHING SIDES — State Sen. Marie Alvarado-Gil blasted the Democratic Party as “unrecognizable” as she confirmed her switch to become a Republican, which our own Jeremy B. White had scooped on Thursday.  Alvarado-Gil, who represents parts of the Central Valley and eastern portions of the state, said Democrats’ control in Sacramento is not working for the state. “I cannot stand by a party that ignores the will of the people and disregards the core American values that my very community supports and believes in,” she said in a joint statement with Senate Republican Leader Brian Jones and California Republican Party Chair Jessica Millan Patterson. Senate President Pro Tem Mike McGuire said in a statement that the move was "disappointing for voters who elected Senator Alvarado-Gil as a Democrat." "They trusted her to represent them, and she’s betrayed that trust," McGuire said, but added: "One silver lining is MAGA Republicans are gaining a pro-choice, pro-LGBTQ+ rights, anti-Trump colleague." Alvarado-Gil flipped her rural, Republican-plurality district in 2022 after she and another Democrat advanced to the general election, dealing a stunning blow to an already diminished Republican caucus. Then-Republican leader Scott Wilk spent money to boost the other Democratic candidate in a failed bid to prevent a Republican lockout. ICYMI — After months of negotiations and failed proposals, state lawmakers on Thursday advanced a slate of retail-theft proposals. Our Lindsey Holden had the full recap in yesterday’s Playbook PM and tells us what comes next.    A message from America's Fuel:   CLIMATE AND ENERGY SPARKS FLY — Newsom and state Sen. Scott Wiener want to rebrand wildfire hazard maps to make them less scary, but some environmental groups and local officials are fighting back. Read more in yesterday's California Climate. ALISO CANYON — Environmental groups are renewing their calls for Newsom to shut down the Aliso Canyon gas storage facility, pressuring the governor to commit to a deadline ahead of a Sept. 26 meeting of the California Public Utilities Commission. The latest push, led by Food & Water Watch and Progressive Democrats of America, includes a letter from more than 150 organizations who say that nearly a decade after the devastating gas blowout, the facility continues to be a looming threat.    SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, our newsletter taking you inside pivotal discussions at the most influential gatherings in the world. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.     Top Talkers SENTENCED: A 73-year-old Florida man arrested in January for threatening to kill California Democratic Rep. Eric Swalwell and his children has been sentenced to two years in prison, NBC News reports. The man, Michael Shapiro, called the incident a “single drunken episode” in court documents. EARTHQUAKE UPDATE: Southern California has seen more than 400 aftershock tremors in the wake of a magnitude-5.2 eqrthquake near Bakersfield, KCAL reports. Geologists said it was a “pretty active sequence,” though risk of further aftershocks is expected to drop in the coming days. AROUND THE STATE — Democrats are hoping Kamala Harris’ so-called “brat summer” will energize young voters and give them an edge in competitive California House races. (CalMattters) — FBI agents on Thursday raided a towing agency in San Francisco amid money laundering allegations. (San Francisco Chronicle) — Burning Man released about 3,000 last-minute tickets to counteract slumping sales. (San Francisco Standard)   A message from America's Fuel: Greener gasoline for today's vehicles is within reach. E15 can reduce tailpipe emissions, improve air quality, and help California achieve its climate goals. That's why more than 71% of Californians support allowing sales of E15. Discover how greenlighting E15 can put California on the road to a greener, cleaner future. Find out more.   PLAYBOOKERS PEOPLE MOVES — Kristin Bertolina Faust, a well-known fundraiser from the Sacramento region with close ties to Vice President Kamala Harris, Gov. Newson and Lt. Gov. Eleni Kounalakis, has been named a fundraising co-chair for Harris’ presidential campaign. Bertolina Faust has been working from the campaign’s Delaware headquarters since shortly after Harris took over as the Democratic nominee. She worked on previous Harris campaigns and was the campaign manager for Sen. Alex Padilla. Bertolina Faust has strong connections with many of the nation’s biggest donors and is helping channel the huge gusher of money coming into the Harris campaign. Her new role and title on the campaign were first reported by NBC News. Other California fundraisers with connections to Harris’ orbit include Stephanie Daily Smith, a senior adviser to the 2024 finance team, and Jen Liu, a senior adviser. BIRTHDAYS — State Sen. Brian Jones (favorite cake flavor: German chocolate)... WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form. CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Rebecca Haase to find out how: rhaase@politico.com.   Follow us on Twitter Dustin Gardiner @dustingardiner Lara Korte @lara_korte   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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