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Elon Musk’s artificial intelligence company, xAI, has filed a federal lawsuit seeking to block a Minnesota law that would make the state the first in the United States to prohibit AI-powered “nudification” technology on websites and applications.
The legal challenge, filed just days before the law is scheduled to take effect, could become a significant test of how far states may regulate artificial intelligence under First Amendment protections while addressing harms associated with AI-generated intimate imagery.
The law, signed in May and scheduled to take effect Saturday, allows civil penalties of up to $500,000 for each violation involving prohibited AI-generated imagery.
xAI Says the Law Is Overly Broad
In its 38-page federal complaint, xAI said it does not oppose Minnesota’s goal of preventing the creation and distribution of AI-generated nude images of real people without their consent.
Instead, the company argues that the law extends beyond that objective by restricting constitutionally protected expression and exposing AI developers to substantial financial liability.
According to the lawsuit, the statute lacks a “safe harbor” provision that would protect developers making good-faith efforts to prevent users from generating prohibited content through their AI systems.
xAI also argues the law could apply to images created with the consent of the person depicted, including images generated by the individual themselves.
The complaint further contends that the statute’s definition of an “intimate part” is overly broad because it includes body areas commonly visible in public settings.
Grok, xAI’s chatbot and image-generation platform available through X and other services, prohibits users from creating nonconsensual nude or sexually explicit images of other people under its terms of service, according to the lawsuit.
Minnesota Defends the Law
Minnesota Attorney General Keith Ellison said his office had not yet been served with the lawsuit or reviewed its contents.
Nevertheless, he defended the state’s effort to combat AI-generated nude imagery created without an individual’s consent.
“But I know that using AI to generate nude images of people against their will is appalling,” Ellison said in a statement.
“There are plenty of worthy debates to have about AI policy. This is not one of them. AI nudification robs the target of their dignity and can cause immense harm on an emotional, personal, and professional level.”
Courts Continue Weighing AI Regulations
The lawsuit arrives as courts continue evaluating the constitutionality of state laws regulating AI-generated content.
Measures addressing election-related deepfakes have produced mixed legal outcomes. California’s election deepfake law was blocked on First Amendment grounds, while Minnesota’s separate law regulating election deepfakes has thus far survived a legal challenge brought by Musk’s company in 2025.
The new case shifts attention from election-related AI content to laws governing AI-generated intimate imagery.
Developers Become the Focus of Legal Challenge
Minnesota’s approach differs from many existing state and federal laws addressing AI-generated sexually explicit images.
Many of those laws focus on the individuals who create or distribute nonconsensual deepfake images rather than the companies developing the underlying AI technology.
The federal Take It Down Act, enacted last year, requires websites and online platforms to establish procedures for removing reported nonconsensual intimate images.
Texas has adopted a different framework. A law enacted there allows individuals depicted in AI-generated nude images to seek civil damages from website or application operators under certain circumstances and provides potential criminal penalties when operators knowingly fail to address unlawful content.
The differing approaches illustrate the evolving legal landscape as lawmakers seek to address harms associated with rapidly advancing generative AI technologies while balancing constitutional protections.
xAI Highlights Existing Platform Safeguards
In its complaint, xAI said Grok already prohibits users from engaging in illegal, harmful or abusive conduct that violates another person’s privacy, including generating unauthorized nude or sexually explicit images of real people.
The company said it enforces those policies through account suspensions and terminations and reports suspected child sexual abuse material to appropriate authorities.
xAI also cited previous public statements describing a “zero tolerance” policy toward child sexual exploitation, nonconsensual nudity and unwanted sexual content.
Earlier this year, following international criticism over AI-generated sexualized images involving women and children, xAI announced additional restrictions on Grok’s image-editing capabilities, including geoblocking features where local laws prohibit such activity.
According to a January statement referenced in the lawsuit, the company also implemented technical safeguards preventing users in certain jurisdictions from editing images of real people wearing revealing clothing, including bikinis and underwear, into nude or sexually explicit content.
Case May Shape Future AI Regulation
The lawsuit could become an early test of how courts balance constitutional free speech protections against state efforts to regulate emerging artificial intelligence technologies capable of generating realistic images.
While xAI says it supports measures aimed at preventing the nonconsensual creation and distribution of AI-generated nude images, it argues Minnesota’s law imposes liability beyond unlawful conduct and risks restricting protected expression.
Minnesota maintains that AI-generated nudification can inflict significant emotional, personal and professional harm on victims, making stronger legal protections necessary.
The outcome of the case is expected to be closely watched as lawmakers across the United States continue developing rules governing rapidly evolving generative AI technologies.
This report is based on reporting by The Associated Press.
