Elon Musk’s AI company xAI has sued Minnesota over a new state law that bans AI “nudification” tools, arguing the measure is unconstitutional and restricts protected speech.
The lawsuit was filed just days before the law takes effect, making Minnesota the first U.S. state to prohibit technology that can generate fake nude images of real people using AI.
While xAI says it supports banning non-consensual AI-generated nude images, it argues the law goes too far by restricting lawful content and imposing fines of up to $500,000 per violation.
The company also says the law lacks protections for AI platforms that make good-faith efforts to prevent misuse.
Minnesota Attorney General Keith Ellison defended the legislation, saying AI-generated nude images created without consent can cause serious emotional, personal, and professional harm.
The case could become an important legal test of how far U.S. states can go in regulating AI tools under the First Amendment.