xAI files lawsuit challenging Minnesota nudification ban as it faces CSAM-related legal pressure

Elon Musk's artificial-intelligence company xAI has filed a federal lawsuit contesting a Minnesota statute that would impose up to $500,000 in penalties for each non-consensual nude image produced by its Grok and Grok Imagine tools. The company argues the law is overly broad, infringes on First-Amendment rights and could force it to disable image-editing features.

The Minnesota law, set to take effect on August 1, 2026, targets “nudification” apps and allows victims to sue providers for individual outputs. xAI contends that the statute’s definition of “intimate parts” extends to ordinary clothing-free depictions such as shorts or swimwear, thereby restricting a wide range of protected expression.

"We’re waiting to be served and will review the lawsuit and response in Court," Minnesota Attorney General Keith Ellison said, adding that the state will defend the law to prevent non-consensual AI-generated nude images.

xAI’s complaint cites recent criminal cases in which users of Grok were arrested for creating child sexual abuse material (CSAM). The company says it has reported thousands of suspected CSAM instances to law enforcement, resulting in dozens of arrests, and is preparing to enhance its safeguards.

The firm warns that the statutory penalties could reach billions of dollars for a widely used service, and that without an injunction it may have to alter its product for Minnesota users. It maintains that its terms of service already prohibit the creation of CSAM and non-consensual intimate images, and that it should be granted safe-harbor protection.

Legal analysts note that the outcome will hinge on whether the court finds the Minnesota law narrowly tailored to address the specific harms of AI-generated nudity without unduly restricting protected speech.