Federal judge rejects xAI's request to halt Minnesota nudification ban

A federal judge on Friday refused to block Minnesota's newly enacted law that prohibits the creation and distribution of AI-generated "nudified" images, rejecting a request from Elon Musk's artificial-intelligence company xAI. U.S. District Judge Donovan Frank said the company filed its motion too late to show an imminent threat, noting that the request came three days before the law was set to take effect. The judge scheduled a hearing for Aug. 19 to consider whether a preliminary injunction is warranted.

The law, signed by Governor Tim Walz in May, bars owners of websites, apps or software from allowing users to alter or generate images that depict intimate parts of an identifiable person when the result appears realistic. Violations could trigger civil penalties of up to $500,000 per unlawful use, along with possible damages and attorney fees. The state’s attorney general, Keith Ellison, argued that xAI's delayed filing should not create an emergency for the court.

xAI contended that the statute is overbroad and that less restrictive measures could achieve the same goal. In its lawsuit, the company asserted that its product Grok already prohibits the generation of non-consensual nude images and that the law would penalize even lawful uses such as artistic, educational or political expression. The American Civil Liberties Union of Minnesota, while supporting earlier versions of the bill, said the final law does not balance First Amendment rights with protections for victims.

The dispute follows broader efforts to regulate AI-generated deepfakes, including similar actions by San Francisco officials and ongoing lawsuits against SpaceX’s parent company over alleged misuse of Grok. Free-speech groups have also criticized the Minnesota law as overly broad, warning it could encompass benign political memes and satire.