Elon Musk’s company, xAI, has filed a lawsuit against the state of Minnesota regarding its pioneering legislation that prohibits “nudification” technology on digital platforms. This case may set a precedent regarding the extent to which states can constitutionally regulate artificial intelligence.
The lawsuit, submitted in federal court on Monday, comes just days before the law is scheduled to take effect on Saturday. If enacted, Minnesota will become the first state to impose a ban on the rapidly growing use of technology that enables the creation of fake nude images of real individuals. The law was enacted in May.
In the extensive 38-page complaint, xAI — whose AI-driven chatbot and image generator, Grok, is available on the platform X, previously known as Twitter — acknowledged the state's objective in prohibiting the distribution of AI-generated nude images of individuals without their consent. However, the company contends that Minnesota’s legislation goes well beyond that aim, by outlawing numerous images and videos that are constitutionally protected and imposing potential penalties of up to $500,000 for each violation.
The lawsuit points out the absence of a “safe harbor” clause for companies making sincere efforts to prevent the generation of such images by users. It further argues that the law encompasses images that may have been consented to by the depicted individuals or could have been created by those individuals themselves.
Additionally, xAI critiques the law’s definition of “intimate part” as excessively broad, including body parts that are frequently seen in public settings.
Minnesota Attorney General Keith Ellison, commenting on the situation, stated that his office has yet to receive the lawsuit or review it. However, he expressed strong disapproval of the AI-generated nude imagery created without consent, calling it a violation of personal dignity that can inflict significant emotional, personal, and professional harm.
Historically, state legislation addressing election-related deepfakes has yielded varied judicial outcomes. California's similar statute was halted due to First Amendment challenges, although Minnesota's law previously endured legal scrutiny in a case filed by Musk’s company.
Unlike existing state and federal laws that penalize the creators of AI-generated sexually explicit content without consent, Minnesota’s law targets the technology itself. The federal Take it Down Act, which was enacted last year, mandates that websites and applications implement mechanisms to remove such images.
In Texas, a different approach was taken to combat nudification. The state established civil liability for website or app owners if they knew that an individual depicted in a nudified image had not consented to its creation or failed to remove it promptly upon notification.
In its lawsuit, xAI asserted that its terms of service for Grok explicitly forbid any illegal or harmful activities that infringe upon privacy, including alterations to images intended to nudify individuals. The company claimed to enforce compliance with these rules by suspending or terminating accounts found in violation and by reporting suspected cases of child sexual exploitation.
Earlier this year, xAI reiterated its "zero tolerance" stance against non-consensual nudity and any forms of child sexual exploitation. Following significant global criticism over the use of sexualized images of women and children, Grok announced in January its intention to geoblock content that breaches local laws, effectively stopping users from editing images of individuals in revealing attire in regions where such actions are prohibited. The platform's prior “spicy mode,” which allowed the creation of explicit content, spurred a backlash from government entities worldwide.
“We have taken technical measures to prevent Grok accounts from editing images of people in revealing attire such as bikinis and underwear,” xAI confirmed in a January statement.


