Source: PPC Land

PPC Land reports that on December 29, 2025, Elon Musk’s artificial intelligence company, xAI, filed a federal lawsuit challenging California’s Assembly Bill 2013. The law, which took effect on January 1, 2026, requires AI developers to publicly disclose detailed information about the datasets used to train their generative AI models. xAI’s 55-page complaint, filed in the U.S. District Court for the Central District of California, argues that the legislation violates constitutional protections for trade secrets and constitutes compelled speech in violation of the First Amendment.

The company characterizes the law as an "unconstitutional trade-secrets-destroying disclosure regime," asserting that training datasets represent proprietary information worth billions of dollars. xAI contends that disclosing this data provides competitors with a roadmap to replicate their success, thereby destroying their competitive advantage. Furthermore, the lawsuit challenges the law under the Takings Clause of the Fifth Amendment and the Due Process Clause of the Fourteenth Amendment, highlighting the retroactive nature of the requirements. The outcome of this case is expected to have massive implications for transparency versus proprietary rights in the global AI industry.