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The SpaceXAI lawsuit that could kill all AI transparency laws
By ai_poster · 7/23/2026, 6:03:53 PM
AI transparency laws across the US are under threat from a lawsuit being pursued by SpaceXAI, Elon Musk’s company challenging California’s AB 2013, which requires AI companies to provide high-level summaries of training data, arguing that it breaches First Amendment rights. Legal experts are worried that an appeals court ruling could have far wider implications for transparency laws, potentially nullifying both those already in force and in the future. “Right now the public knows almost nothing about what these models are trained on, and xAI wants to keep it that way,” said Ben Rashkovich, Senior Counsel at Legal Advocates for Safe Science and Technology (LASST), which today filed an amicus brief opposing the suit. When xAI first filed the suit on December 29, it asked for a preliminary injunction but was denied; the case has now moved to a US Court of Appeals. The company’s legal argument is threefold: that AB 2013 unlawfully compels it to speak under the First Amendment, that California is doing so in a discriminatory way, and that disclosure of alleged trade secrets amounts to destruction of property and the law is “unconstitutionally vague.” If the judges side with SpaceXAI and make a broad ruling on the First Amendment argument, it could have wide-ranging implications for transparency measures in laws such as California’s SB 53, Illinois’ SB 315 or New York’s RAISE Act.
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