xAI challenges Minnesota law banning AI-generated fake nude images

Elon Musk’s AI company, xAI, is challenging a Minnesota state law in federal court that prohibits the use of AI tools to create fake nude images of real people. The law, which went into effect on August 1, allows victims to pursue civil cases and imposes a $500,000 penalty for each unlawful access or download of such AI-altered images.

xAI argues that the ban unconstitutionally restricts free speech and visual expression tools. While the company previously sought a temporary restraining order to halt the law, a judge denied the request, citing a delayed filing and a lack of evidence of immediate harm.

Minnesota Attorney General Keith Ellison maintains that the law is narrowly tailored and expects the company will fail in its constitutional challenge. The legislation received overwhelming support in the state legislature, passing the House with a 132-1 vote and the Senate with a 65-0 vote.