> I think companies will simply quit doing business in California
Sure they will. Just like how the auto manufacturers stopped trying to sell in CA after stricter emissions regulations and just like how companies stopped trying to serve European visitors after GDPR came into force. California is a $4T GDP, placing it just behind Japan and ahead of India in global rankings. I am sure they are happy to tell non-complaint companies to piss off and not let the door hit them on the way out. This is the canary in the coal mine for cowboy AI companies, once EU regulators get into the game their days of playing fast and loose with this tech will be over.