Geoblocking the economy that’s the largest in the US and fourth largest in the world (if it were a country) over some kid gloves regulations would be phenomenally stupid.
that's a ridiculous stance to take, and you could take it all day -- regulations change on the net daily, it's a full time job being totally compliant, that's why people make money (..or attempt to..) while doing it.
That is just one of the issues, administrative bloat and drag; not even to mention that it is very likely that those kinds of administrative burdens are what crushes innovation and, more importantly to the established players, competition. It is why it is known that the established large players often encourage administrative hurdles and red tape because they are established and in many cases they can just pass on the cost of administrative burdens to the consumer.
You are geoblocking California from your AI company? That’s pretty significant. How much business did your AI company do in California before this news?
For global companies, California is less than 40 million people out of more than 8 billion. For regionally concentrated companies, they only have to care if the region they're concentrated in is California. For everyone else, losing a fraction of a percent of the customer base in exchange for lower compliance costs and legal risks is often completely logical.
The GDPR and other laws were really hammed up by consultants and lawyers looking to make a lot of money claiming it was really difficult to do right, but in my experience it's incredibly overblown.
Most of who's getting caught up in these laws are very large companies that could comply but consistently don't put forth effort to do so after repeated complaints. Even if you do fall under the eye of regulators (most won't ever) if you show that you're putting forth a good faith effort to comply it's not a big deal.
Internet is becoming fragmented. :-(