xAI Loses Bid To Block Transparency Law

Elon Musk’s xAI lost its bid to block California’s AB 2013 transparency law on February 26, 2026, when a federal judge declined to issue a preliminary injunction. AB 2013, effective January 1, 2026, requires developers of generative models to disclose the datasets used to train their models; xAI argued the mandate violated trade-secret protections and the First Amendment. The ruling could spur broader state-level regulation and increase litigation risk for AI firms.