Elon Musk’s xAI has filed a federal lawsuit seeking to block Minnesota’s first-in-the-nation ban on AI nudification technology, arguing that the law violates the First Amendment and could expose platforms to penalties of up to $500,000 per violation.
TL;DR
- xAI sued Minnesota Attorney General Keith Ellison days before the law’s August 1, 2026, effective date.
- The law targets services that let users generate realistic nude images of identifiable people and allows penalties of up to $500,000 per unlawful access, download or use.
- xAI argues that the ban is overly broad, while Minnesota says it protects victims from serious personal and professional harm.
Why xAI Is Challenging Minnesota’s Law
xAI filed its 38-page complaint in federal court against Minnesota Attorney General Keith Ellison, asking the court to declare the state’s new law unconstitutional and prevent officials from enforcing it.
The company said it does not oppose Minnesota’s goal of stopping the non-consensual distribution of AI-generated nude images. However, its complaint alleges that the legislation “imposes an overbroad, content-based ban on free speech and the tools of visual expression.”
According to xAI, the law could impose liability even when the person depicted consented to the creation of an image or created it themselves. The company also argues that the statute does not provide a safe harbor for developers that make good-faith efforts to prevent users from misusing their tools.
The complaint claims Minnesota’s definition of an intimate part is broad enough to cover body parts commonly visible in public settings. xAI also argues that the law does not adequately protect material with artistic, political, satirical, scientific, educational, medical or religious value.
Without court intervention, xAI says it may have to restrict some Grok image-editing features when the statute takes effect. The company is seeking either a complete block on enforcement or an order preventing Minnesota from applying the law against xAI.
What Minnesota’s Nudification Ban Covers
Minnesota’s Chapter 72, also known as H.F. 1606, prohibits owners or controllers of websites, applications, software and other services from allowing users to access, download or use technology that nudifies an image or video. It also prohibits companies and individuals from advertising or promoting services that perform such actions.
Under the legislation, an image is considered nudified when it is altered or generated to show an intimate part that was not present in the original image, and the result is realistic enough for a reasonable person to believe it belongs to the identifiable individual.
The restriction does not apply when the service requires substantial technical or artistic skill from the user. This exemption is one of the points critics have highlighted, as easier consumer-facing AI services would face restrictions that technically demanding tools may avoid.
Victims can bring civil cases seeking compensation of up to three times their actual damages, punitive damages, injunctive relief and legal costs. Minnesota’s attorney general can also seek a civil penalty of up to $500,000 for each unlawful access, download or use.
The law was signed by Minnesota Governor Tim Walz on May 7, 2026, and is scheduled to take effect on August 1, 2026. It passed the Minnesota House by a 132-1 vote.
Minnesota Defends Its First-In-The-Nation Restriction
Ellison said his office had not yet been served with the complaint when he issued his initial response. However, he rejected the idea that stopping non-consensual AI-generated nude imagery was merely a debatable technology-policy issue.
“AI nudification robs the target of their dignity and can cause immense harm,” Ellison said, pointing to its emotional, personal and professional effects.
State Representative Jessica Hanson, who sponsored the bill in the House, said nudification features enable users to create non-consensual sexually explicit deepfakes, including child sexual abuse material. She argued that targeting the tools addresses the point at which the harmful content is created, rather than relying solely on action against individual perpetrators.
“No one should have to worry that nude images of themselves can be generated by AI, without their permission, at the push of a button,” Hanson said.
How The Law Differs From Existing Deepfake Rules
Minnesota’s approach differs from many existing state and federal laws because it directly targets companies that provide the technology, rather than focusing only on people who generate or distribute non-consensual images.
The federal TAKE IT DOWN Act addresses the publication of non-consensual intimate imagery and requires covered online platforms to establish a removal process. Minnesota’s law goes further by attempting to stop access to consumer-facing nudification capabilities before an image is distributed.
xAI says Grok’s terms prohibit illegal, harmful or abusive activities, including using another person’s image to generate non-consensual nudity. The company says it can suspend or terminate violators and report suspected child sexual abuse content.
Earlier in July, xAI separately sued a Grok user accused of misusing the system to create child sexual abuse material. That complaint said xAI had suspended 52,222 accounts and made 73,604 reports to the National Center for Missing and Exploited Children in 2026, resulting in at least 244 arrests.
The Minnesota case could become an important test of how far states can go in holding AI developers responsible for user-generated images while remaining within constitutional free-speech protections. No ruling on xAI’s request to block the law had been reported as of July 30, 2026.
