xAI files lawsuit against Minnesota over new deepfake ban

Elon Musk's artificial-intelligence subsidiary, now operating under SpaceX, filed a federal lawsuit on Monday challenging a Minnesota statute that bans so-called “nudify” applications. The complaint argues the law imposes an overbroad, content-based restriction on free speech and visual expression.

The Minnesota law, which takes effect Saturday, targets apps and websites that enable users to create non-consensual sexualized images, imposing fines of $500,000 for each prohibited deepfake generated. The legislation, passed in April, was promoted by state Sen. Erin Maye Quade after a case involving a man who produced sexualized images of more than 80 women using their social-media photos without consent.

"The statute imposes an overbroad, content-based ban on free speech and the tools of visual expression in a clumsy attempt to prohibit 'nudification.'"

xAI's attorneys contend the measure violates First Amendment rights and that the penalties are disproportionate, potentially costing a business that creates 100,000 illegal images up to $50 billion.

The company also faces a separate proposed class-action lawsuit alleging its Grok chatbot and image generator were used to produce child sexual-abuse material and that xAI failed to inform authorities about such misuse. In its Minnesota filing, xAI said it strictly prohibits the generation of nude or sexualized images of individuals without consent and has taken legal action against users who circumvent its technical safeguards.

xAI previously challenged a similar California law aimed at AI-generated deepfakes, a case in which a federal judge partially struck down the restriction on election-related content.