xAI Moves to Block California Law Over AI Training Data Sharing

California’s new AI training-data transparency law would “eviscerate” trade secret protections, Elon Musk’s xAI told a federal court as it asked to block the law’s implementation while the company’s lawsuit challenging it proceeds.

The law, which went into effect Jan. 1, violates the US Constitution because it’s too vague and forces xAI to share its valuable training data without compensation, the company said in a motion for preliminary injunction filed Jan. 16.

Artificial intelligence developers spend significant time and money to find high-quality training data, the motion said, and enforcement of the state law would “gut the AI industry” ...