Xai Takes Legal Action Against Minnesota's 'Nudify' App Ban

WHO:

CNBC - The law was signed in May by Governor Tim Walz.

CNBC - Minnesota state Sen. Erin Maye Quade stated that the proposed bill was similar to older laws prohibiting the act of peeping into windows to capture explicit photos.

CNBC - xAI is now owned by SpaceX.

ABC News - Minnesota state Sen. Erin Maye Quade stated that the proposed bill was similar to older laws prohibiting the act of peeping into windows to capture explicit photos.

CNBC - The law was signed into law by Governor Tim Walz earlier this year.

CBS News - Minnesota state Sen. Erin Maye Quade stated that the proposed bill was similar to older laws prohibiting the act of peeping into windows to capture explicit photos.

Engadget - Elon Musk's xAI is involved in the lawsuit.

CNBC - Minnesota Attorney General Keith Ellison is the defendant in the lawsuit.

CNBC - Minnesota state Sen. Erin Maye Quade spearheaded the law.

WHAT:

CNBC - The law, known as HF 1606, imposes $500,000 fines each time a user creates explicit deepfakes.

CBS News - The lawsuit filed by xAI is 38 pages long and argues that the law subjects xAI to a penalty of $500,000 per violation.

CNBC - The lawsuit filed by xAI is 38 pages long.

ABC News - The lawsuit claims there is no "safe harbor" provision for companies making good faith efforts to prevent the creation of prohibited images.

CNBC - xAI's lawsuit claims that the law could potentially cost a business $50 billion if users created 100,000 prohibited images.

ABC News - The lawsuit argues that the law's definition of "intimate part" is overly broad, covering depictions of men without shirts and people in shorts or swimsuits.

CBS News - The lawsuit seeks to declare the law unconstitutional and prevent Minnesota from enforcing it.

ABC News - The law is set to take effect in August, making Minnesota the first state to attempt to outlaw "nudification" technology.

CNBC - The lawsuit was filed on Monday, just days before the law is scheduled to take effect on Saturday.

ABC News - The lawsuit is 38 pages long and argues that the law subjects xAI to a penalty of $500,000 per violation.

ABC News - The lawsuit claims there is no "safe harbor" provision for companies making good faith efforts to prevent the creation of prohibited images.

CNBC - The law imposes $500,000 fines each time a user creates explicit deepfakes.

CBS News - xAI's lawsuit claims the law "imposes an overbroad, content-based ban on free speech and the tools of visual expression in a clumsy attempt to prohibit 'nudification.'"

CBS News - The lawsuit seeks to declare the law unconstitutional and prevent Minnesota from enforcing it.

CBS News - The law, known as HF 1606, creates a pathway for victims and the state attorney general's office to pursue legal action against companies involved in creating non-consensual intimate imagery.

CNBC - The lawsuit was filed on Monday in federal court in Minnesota.

CNBC - The law's definition of "intimate part" is described as broad, banning depictions of men without shirts and people in shorts or swimsuits, which xAI argues extends beyond typical definitions of "nudification."

Engadget - xAI has filed a lawsuit to block Minnesota's new law banning 'nudify' apps.

Techmeme - xAI claims the law violates the First Amendment.

CNBC - The Minnesota law targets apps and websites that generate non-consensual sexualized imagery and imposes $500,000 fines for each prohibited image created.

CNBC - The law was passed in April and goes into effect on Saturday.

CNBC - xAI's complaint states that the law imposes an "overbroad, content-based ban on free speech."

WHERE:

Engadget - The lawsuit is filed in federal court in Minnesota.

CNBC - The law applies to the state of Minnesota.

WHEN:

CBS News - The law is set to take effect in August.

CNBC - The law goes into effect on Saturday.

CNBC - The law was passed in April.

WHY:

CBS News - Ellison stated, "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."

AP News - Ellison stated, "But I know that using AI to generate nude images of people against their will is appalling."

ABC News - xAI stated that the law "extends far beyond that goal" of prohibiting non-consensual imagery, banning many constitutionally protected images and videos.

CNBC - xAI argues that the law's penalties could cost a business $50 billion if users created 100,000 prohibited images.

CBS News - xAI claims the law "extends far beyond that goal" of prohibiting non-consensual imagery and exposes a "wide array of protected speech to civil liability and government sanctions."

CNBC - The law was motivated by incidents where a man created sexualized images of over 80 women using their social media photos without consent.

CNBC - xAI argues that the law violates First Amendment protections and imposes excessive penalties.

HOW:

AP News - xAI stated that it has “zero tolerance for any forms of child sexual exploitation, non-consensual nudity, and unwanted sexual content.”

ABC News - xAI's terms of service prohibit using Grok for "any illegal, harmful, or abusive activities" that violate someone's privacy, including altering images to nudify them.

CNBC - Musk's company claims it "strictly prohibits" users from generating nude or sexualized images of people without their consent.

CNBC - xAI argues that the law makes the AI provider strictly liable regardless of the measures in place to prevent users from generating prohibited images.

CNBC - xAI argues that the law's penalties could cost a business $50 billion if users created 100,000 prohibited images.

CNBC - Musk's company claims it "strictly prohibits" users from generating non-consensual images and has filed suits against users who violate this policy.

(UPDATED July 30, 2026 05:54 UTC)

Minnesota has enacted a new law, known as HF 1606, which imposes hefty fines of $500,000 for each instance of creating explicit deepfakes, a measure signed by Governor Tim Walz in May. The law is set to take effect in August, and it has already sparked a lawsuit from xAI, which argues that the penalties are excessive and unjust. Attorney General Keith Ellison emphasized the importance of this legislation, stating that AI nudification strips individuals of their dignity and can lead to significant emotional and professional harm.

(UPDATED July 30, 2026 01:29 UTC)

In a significant development, xAI is now owned by SpaceX, and the company has filed a 38-page lawsuit claiming there is no "safe harbor" provision for businesses trying to prevent the creation of prohibited images. Minnesota state Senator Erin Maye Quade has pointed out that the proposed bill is reminiscent of older laws aimed at preventing peeping into windows to capture explicit photos. xAI has emphasized its commitment to a zero-tolerance policy against child sexual exploitation, non-consensual nudity, and unwanted sexual content, with Ellison stating that using AI to generate nude images of individuals without their consent is appalling.

(UPDATED July 30, 2026 00:17 UTC)

xAI has filed a lawsuit challenging a Minnesota law that it claims could cost businesses up to $50 billion if users create a significant number of prohibited images, arguing that the law's definition of "intimate part" is overly broad. The lawsuit seeks to declare the law unconstitutional and prevent its enforcement, with xAI emphasizing that their terms of service already prohibit any harmful activities, including altering images to nudify individuals. Minnesota Attorney General Keith Ellison has stated that while there are important discussions to be had about AI policy, this particular issue is not one of them, highlighting the potential emotional and professional harm caused by AI nudification.

(UPDATED July 29, 2026 21:19 UTC)

Minnesota is poised to become the first state to outlaw "nudification" technology, with a new law set to take effect in August, but a lawsuit filed just days before its implementation could complicate matters. The 38-page lawsuit argues that the law imposes hefty penalties of $500,000 per violation on xAI and claims there is no "safe harbor" for companies trying to comply. xAI contends that the law goes too far by banning many constitutionally protected images and videos, despite their terms of service already prohibiting the use of their technology for illegal or harmful activities.

(UPDATED July 29, 2026 19:26 UTC)

Minnesota has enacted a new law that imposes hefty fines of $500,000 each time a user creates explicit deepfakes, a move signed into law by Governor Tim Walz earlier this year. In response, xAI has filed a lawsuit claiming the law is an overbroad ban on free speech and seeks to declare it unconstitutional, arguing that its penalties could cost businesses up to $50 billion if users create a large number of prohibited images. State Attorney General Keith Ellison emphasized the importance of addressing the harm caused by AI nudification, stating that it robs individuals of their dignity and can lead to significant emotional and professional damage.

(UPDATED July 29, 2026 10:53 UTC)

A new law known as HF 1606 is paving the way for victims and the state attorney general's office to take legal action against companies involved in creating non-consensual intimate imagery. A lawsuit has already been filed in federal court in Minnesota, with xAI arguing that the law's broad definition of "intimate part" includes depictions of men without shirts and individuals in shorts or swimsuits, which they believe goes beyond typical definitions of nudification. xAI claims that the law imposes strict liability on AI providers, regardless of the safeguards they implement to prevent users from generating prohibited images.

(UPDATED July 29, 2026 07:55 UTC)

Elon Musk's xAI has filed a lawsuit in federal court in Minnesota to block a new state law that bans 'nudify' apps, claiming it violates the First Amendment. The law, which goes into effect on Saturday, targets apps and websites that generate non-consensual sexualized imagery and imposes hefty fines for each prohibited image created, with xAI arguing that the penalties could cost businesses up to $50 billion. Minnesota Attorney General Keith Ellison is the defendant in this case, which was prompted by incidents involving a man who created sexualized images of over 80 women without their consent.