Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
On Thursday, Gov. Gavin Newsom (D-Calif.) signed legislation to protect children online and while using artificial intelligence (AI).
The new laws are aimed at protecting children under 16 and forbid social media companies from providing addictive features to kids in this age group. The legislation also tightens safeguards for companion AI chatbots, including crisis guidelines for suicidal tendencies and parental controls, among other things.
Don’t Miss:
The legislation also expands the ambit of child sexual exploitation to include any AI-generated or digitally changed content that shows children under 18 engaged in any explicit act. It also prohibits social media platforms from offering children under 16 addictive features such as autoplay, infinite scroll and certain algorithmically recommended content feeds.
“Today’s legislation makes clear that California will not stand by while unregulated technology puts our children at risk,” said Newsom.
The measures also include a four-year ban on the sale of AI chatbot-powered toys for children, per a Reuters report.
Social media giant Meta Platforms Inc. and YouTube, owned by Alphabet Inc., did not immediately respond to Benzinga’s request for comment.
Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time
Big Tech’s Social Media And AI Conundrum
Last month, Meta agreed to pay about $18 billion to resolve claims from 29 states that it designed its platforms to addict children. Sen. Bernie Sanders (I-Vt.) noted that the settlement was “a good step forward” but added that much more needed to be done.
Earlier this week, Microsoft Corp and certain teachers’ unions signed an agreement to set up legally enforceable protections to safeguard students, families and educators from AI misuse in classrooms.
Children Safety on Social Media a Global Issue
The U.K. government is reportedly planning to enforce legislation requiring Apple Inc. and Google to block explicit images on children’s smartphones.
Last month, Meta said noted that it deactivated over 756,000 Australian accounts suspected of belonging to children under 16 to comply with the country’s landmark social media ban that took effect in December last year.
Photo courtesy: Shutterstock
Read Next:
Building Wealth Across More Than Just the Market
Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.
Arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
Skybound Entertainment
Entertainment franchises can become valuable long-term assets when they successfully expand across multiple platforms. Skybound Entertainment, the company behind The Walking Dead and Invincible, develops original intellectual property that spans comics, television, film, video games, merchandise, and licensing. With more than 250 IPs in its portfolio and a strategy focused on retaining franchise rights while scaling successful stories across media, Skybound offers investors exposure to the growing entertainment and creator economy through a private company rather than traditional public market investments.
Green Coffee Company
Coffee is a daily staple for millions of consumers, but investors rarely get direct exposure to the brands and supply chains behind it. Green Coffee Company offers a way to participate in the growth of the coffee market through its exclusive U.S. and Canadian distribution rights for Colombian brand Juan Valdez. With the brand expanding across major retailers including Target, Walgreens and Kroger, and GCC reporting 26X revenue growth over four years, the company is positioning itself to bring a well-known Colombian coffee brand to more consumers across North America.
American PowerGen
As artificial intelligence drives a surge in electricity demand, reliable power generation is becoming a critical part of the technology ecosystem. American PowerGen is developing natural gas-fired power plants in Texas, a fast-growing market fueled by AI data centers, manufacturing expansion, and population growth. By advancing projects through permitting, fuel supply, and grid interconnection, the company is positioning itself to help meet rising energy needs while offering investors exposure to the infrastructure supporting the next wave of AI and industrial growth.
Qnetic
As electricity demand rises alongside AI, data centers, and renewable energy, long-duration energy storage is becoming increasingly important. Qnetic is developing a kinetic energy storage system designed to provide long-lasting, chemical-free electricity storage, offering investors exposure to the infrastructure supporting a more resilient and reliable power grid.
EquityMultiple
For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.
FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
Fundrise
Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
