By Blake Brittain
March 5 (Reuters) - Elon Musk’s artificial intelligence company xAI failed to convince a California federal court on Thursday to temporarily block the state’s law requiring companies to disclose information about the data they use to train AI models.
U.S. District Judge Jesus Bernal in Los Angeles said that xAI had not yet shown it was likely to prove the law violated its free-speech rights or was otherwise unconstitutional.
Spokespeople for xAI and California’s attorney general’s office did not immediately respond to requests for comment on the ruling.
California’s law, enacted by Governor Gavin Newsom in September 2024, requires generative AI companies to publicly post a summary of the datasets used to train their systems. The data transparency law went into effect on January 1 this year, and is part of the state’s broader push to regulate AI companies.
xAI sued the state in December. It argued the law violated its free-speech rights under the U.S. Constitution and would force the company to reveal trade secrets about how its AI models are trained.
Bernal on Thursday denied xAI’s request for a preliminary injunction to halt the law’s enforcement, finding the company had not shown at this stage in the case that its lawsuit was likely to succeed.

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- Elon Musk’s artificial intelligence company xAI was denied a temporary block on California's law requiring data disclosure for AI training models.  
- U.S. District Judge Jesus Bernal found that xAI did not demonstrate a likelihood of success in proving the law violated its free-speech rights or was unconstitutional.  
- California's law, effective January 1, 2026, mandates generative AI companies to publicly summarize the datasets used for training, as part of the state's broader AI regulation efforts.

xAI loses bid to halt California AI data disclosure law