Elon Musk's artificial intelligence venture, xAI, has initiated legal action against the state of Minnesota over a groundbreaking law that prohibits “nudification” technology on digital platforms. This lawsuit could set a significant precedent regarding state powers to regulate artificial intelligence within constitutional boundaries.
The lawsuit was filed on Monday in a federal court, just days before the law is scheduled to come into effect on Saturday. Minnesota is poised to become the first state to enact such a ban aimed at curbing the technology that enables the creation of fake nude images of individuals through AI. The legislation was enacted in May.
In its 38-page filing, xAI, which operates the AI chatbot and image generator Grok across various platforms, including X (formerly Twitter), expressed an understanding of Minnesota's goal of preventing the non-consensual distribution of AI-generated nude images. However, the company contends that the law overreaches by prohibiting numerous constitutionally protected images and subjecting xAI to substantial fines of $500,000 for each infringement.
The lawsuit highlights the absence of a “safe harbor” clause that would protect companies making diligent efforts to prevent the creation of such images by their users. It argues that the law encompasses images that individuals consent to and those that they created themselves.
Furthermore, xAI critiques the law’s broad definition of “intimate parts,” arguing that it includes body parts commonly seen in public settings.
Minnesota Attorney General Keith Ellison commented that his office had not yet received or reviewed the lawsuit. He stated, "Using AI to generate nude images of individuals without their consent is abhorrent. While there are important discussions to be had regarding AI policy, this matter isn't one of them. AI nudification undermines the dignity of individuals and can inflict profound emotional, personal, and professional harm."
The effectiveness of state laws addressing deepfake technology has varied in judicial reviews. For instance, California's legislation was halted due to free speech concerns under the First Amendment. Minnesota's law, however, has withstood a 2025 legal challenge from xAI thus far.
It's important to note that this legislation is separate from both state and federal laws that target deepfakes and AI-created explicit content lacking consent. Those regulations generally impose penalties on users responsible for creating such imagery rather than the developers of the technology itself. The federal Take It Down Act, enacted last year, mandates that platforms must facilitate the removal of such content.
Last year, Texas approached the issue differently by holding website and app owners accountable for civil damages if they knowingly hosted non-consensual nudified images and failed to act quickly upon notification.
In its lawsuit, xAI emphasized its commitment to ethical use, stating that its service terms strictly prohibit any illegal or harmful actions infringing on individual privacy, including modifications to create nudified images. The company asserts that it actively enforces these standards through account suspensions, terminations, and reporting suspected child sexual abuse material.
Earlier this year, xAI declared a “zero tolerance” policy for non-consensual nudity and any form of child sexual exploitation. In response to global criticism regarding sexualized imagery, Grok announced it would implement geo-blocking measures to ensure compliance with local laws, which prevents users from modifying photos of real individuals in revealing attire in jurisdictions where such actions are illegal. The previously controversial "spicy mode" feature, which allowed the creation of explicit content, has been the subject of widespread governmental backlash internationally.
“We are committed to employing technological safeguards that prevent Grok from enabling the editing of images featuring individuals in revealing clothing, such as swimsuits and lingerie,” xAI stated in a January announcement.
