Elon Musk's xAI, now owned by SpaceX, filed a federal lawsuit challenging Minnesota's ban on non-consensual AI-generated intimate imagery. In the complaint, filed July 28 in federal court, xAI's attorneys argued the statute imposes an overbroad, content-based ban on free speech and the tools of visual expression. The law, set to take effect August 1, allows for damages of $500,000 per illegal access or use.
Minnesota's ban—the first of its kind in the U.S.—prohibits AI nudification and allows affected parties to sue platforms that allow the technology. The bill passed nearly unanimously: 132-1 in the House and 65-0 in the Senate. The law was spearheaded by state Senator Erin Maye Quade after a man created sexualized images of over 80 women without their consent.
xAI argued in its filing that the law is overly broad, noting that Minnesota's definition of intimate part includes ordinary depictions of men without shirts, people in shorts or swimsuits, and other body parts routinely displayed in public. The company also argues existing federal law (the TAKE IT DOWN Act) and Minnesota state law already prohibit nonconsensual deepfakes with nudity.
xAI has announced it will disable Grok's image-editing feature for Minnesota users. Approximately 117 million people had used Grok as of March 2026. This case is shaping up as a critical test of whether states can effectively regulate harmful AI uses without federal guidance, and the outcome could influence how other states draft AI legislation.