Elon Musk's artificial intelligence company xAI has failed in its bid to temporarily block a California law mandating the disclosure of data used to train AI models. A federal judge in Los Angeles ruled that xAI has not yet demonstrated the law violates its free-speech rights or is unconstitutional.
California's data transparency law, enacted in September 2024, requires generative AI firms to publicly list the datasets used in their systems. The law took effect January 1, 2025, as part of the state's ongoing efforts to regulate the AI industry.
xAI had sued the state in December, arguing the law infringed upon its constitutional free-speech rights and would compel the disclosure of proprietary training methods. The court denied xAI's request for a preliminary injunction, concluding the company is unlikely to succeed on its claims at this stage.