xAI sues Minnesota to block first-in-nation ban on AI 'nudification' apps
Elon Musk's company says the law banning tools that create fake nude images is too broad and violates free speech — even as it moves to restrict Grok anyway.
What happened: xAI, Elon Musk's AI company, sued Minnesota days before its new law banning 'nudification' technology was set to take effect on August 1. The law, the first of its kind in the US, targets apps and websites that let people create fake nude images of real people using AI. xAI's chatbot and image tool, Grok, has been at the center of a global backlash since January after users generated millions of nonconsensual 'undressed' images of women. Minnesota's attorney general, Keith Ellison, called the practice 'appalling' and said the lawsuit isn't a legitimate AI policy debate.
Why it matters: This is a real test of how far states can go in regulating AI without running into the First Amendment. Minnesota's law imposes penalties up to $500,000 per violating image and no 'safe harbor' for companies that try in good faith to block misuse — potentially exposing a company like xAI, with millions of users, to fines in the billions. Other states, including Texas and California, have tried different approaches with mixed legal success, so courts are still sorting out where the line is.
How it works, plainly: Nudification tools use AI image-editing to strip clothing from photos of real people without consent. Minnesota's law bans offering that technology at all, unlike most state and federal laws (including the federal Take It Down Act), which punish the people who create the images rather than the tool-makers themselves. xAI argues the law is written so broadly it would also ban clearly legal content — art, medical images, satire — and even images people made of themselves or consented to.
The rollout: xAI says the law leaves it 'no practical choice' but to restrict Grok's image-editing features in Minnesota once the law takes effect, even though it says it would rather rely on its existing terms of service banning abusive use. Governor Tim Walz responded bluntly online: 'See you in court, creep.' The case will likely shape whether other states pursue similar bans on the tools themselves rather than just their misuse.