xAI Sues Minnesota Over the First US ‘Nudify’ Ban
xAI, owned by SpaceX, has sued Minnesota’s attorney general to block a ban on "nudification" technology, arguing that the First Amendment protects their right to build such tools.
July 29, 2026 – 5:47 pm
(Image by: Trevor Cokley)
xAI presents a novel argument in favor of continuing to develop tools that digitally undress people, citing the First Amendment.
On Monday, as reported by CBS News, xAI filed a lawsuit against Minnesota’s attorney general, aiming to prevent a law from taking effect on Saturday that bans "nudification" technology.
Minnesota’s HF 1606
The bill bars sites or apps from enabling users to "nudify" a real, identifiable person by generating realistic fake images showing intimate parts they never exposed. It also prohibits advertising such tools and imposes civil penalties of up to $500,000 for each violation. The funds collected support services for victims of sexual assault and abuse.
xAI’s Legal Stance
xAI describes the law as an "overbroad, content-based ban on free speech and tools of visual expression." They do not dispute Minnesota’s interest in preventing nonconsensual nude images but argue that the law sweeps up protected speech alongside them.
The company warns against the potential financial burden, stating that a service with 100,000 banned images could face "an eye-popping $50 billion" fine. They also claim that the law’s broad scope might extend to images of shirtless men or people in swimsuits, though the statute does exempt tools requiring significant user technical skill and leaves federal Section 230 protections intact.
An Unconventional Plaintiff
xAI makes its free-speech case while facing scrutiny for issues the Minnesota law aims to address, including a proposed class action alleging the creation of child sexual abuse material using Grok Imagine. Regulators in multiple countries have also launched investigations into xAI’s technology.
The company asserts that it "strictly prohibits" nonconsensual sexual images and has even sued its own users for bypassing their blockers. This tool, however, has been linked to the creation of sexualized images of individuals without their consent, including a UK Member of Parliament. It is also at the center of European efforts to ban nudify apps.
This lawsuit is part of a broader debate regarding AI regulation. The Trump administration has expressed its intention to challenge state AI laws and advocate for a national framework. Minnesota’s ban on prediction markets was recently blocked, setting a precedent for state-level AI legislation.
The state remains firm in its position, with Attorney General Keith Ellison stating, "There are plenty of worthy debates to have about AI policy. This is not one of them." Governor Tim Walz was more direct, declaring: