Musk's xAI Takes Legal Action Against Minnesota Over Landmark AI Nudification Ban

July 30, 2026 - 03:21

Elon Musk's artificial intelligence company, xAI, has filed a lawsuit against the state of Minnesota challenging a new law that prohibits the use of technology capable of generating nude images of people without their consent. The law, the first of its kind in the United States, targets what lawmakers call "nudification" tools that use AI to digitally remove clothing from photos or create realistic fake nude images.

The lawsuit argues that the Minnesota statute is overly broad and violates constitutional protections for free speech and innovation. xAI claims the law could restrict legitimate uses of AI image generation, including artistic expression, medical training, and research. The company says the legislation was rushed through without proper consideration of how it might affect technology companies operating in the state.

Minnesota Governor Tim Walz signed the bill earlier this year, describing it as a necessary step to protect children and adults from deepfake exploitation. Supporters of the law point to rising cases of nonconsensual intimate image abuse, particularly among teenagers, where AI tools are used to create fake nude photos of classmates.

Legal experts say the case could set an important precedent for how states regulate AI-generated content. xAI is seeking a court order to block enforcement of the law while the legal challenge proceeds. The company argues that existing laws against revenge porn and child exploitation already address the harms the Minnesota law aims to prevent, without stifling technological development.