By Mike Swift ( July 29, 2026, 00:01 GMT | Comment) -- A federal appeals court is poised to consider xAI's novel challenge to California's Generative AI Training Data Transparency Act, which requires high-level disclosures about model-training datasets. xAI argues the TDTA is unconstitutional because it compels speech and exposes valuable trade secrets akin to the formula for Coca-Cola, while supporters counter that it merely requires an "ingredient label," not proprietary algorithms or methods.Whether a new California law requires disclosures by artificial intelligence companies that are the legal equivalent of the proprietary recipe for Coca-Cola, or a cereal box ingredients label, is due to be decided soon by a federal appeals court. As the first constitutional challenge to a state AI transparency law to reach a US appeals court, it could decide what states can require frontier AI companies to reveal about the data their models are built on....
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