Technology Elon Musk’s xAI sues Minnesota over law banning ‘nudification’ technology

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First-in-nation law sets up test on states’ power to regulate use of AI as it tries to outlaw fake nude images of real people

Elon Musk’s company xAI has sued Minnesota over the state’s first-in-the-nation law banning “nudification” technology on websites and apps, potentially providing a test for how far states can go in constitutionally regulating the use of artificial intelligence.

Musk’s company sued on Monday in federal court, days before the law is set to take effect on Saturday and make Minnesota the first state to try to outlaw the increasingly proliferating technology that lets people use AI to create fake nude images of real people. The law was signed in May.

In the 38-page lawsuit, xAI – whose AI model chatbot and image generator Grok is available on the social media platform known as X, formerly Twitter, and elsewhere – said it does not contest the state’s interest in banning the distribution of AI-generated nude images of real people without their consent. But it said Minnesota’s law “extends far beyond that goal”, banning many constitutionally protected images and video and subjecting the company to a penalty of $500,000 for each violation.

The lawsuit argues there is no “safe harbor” provision for companies that make good-faith efforts to prevent such images from being created by users and that it covers images that were consented to by the depicted person, or even created by that person.

 
Judge denies request by Elon Musk’s xAI to pause Minnesota nudification ban

A federal judge on Friday denied a request from Elon Musk’s artificial intelligence company xAI to block a Minnesota law that will be the first in the nation to ban nudification technology.

U.S. District Judge Donovan Frank ruled that there was little risk of immediate harm from the law going into effect as scheduled on Saturday, despite a lawsuit this week from xAI claiming that the law violates the First Amendment’s guarantee of free speech.

“xAI filed the motion on July 29, 2026, nearly three months after the law was signed, and only three days before the law is set to take effect. Such a delay in bringing the action and the motion suggests that harm is not immediate,” the judge wrote in a two-page order, denying xAI’s request for a pause to the law.

The court could still pause the law at a later time. The judge wrote that he’ll hold a hearing on Aug. 19 on whether to grant a preliminary injunction.

 
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