August 17, 2026, (Inside AI) — Minnesota Attorney General Keith Ellison has urged a federal judge to reject xAI's attempt to block the state's new ban on AI "nudification," calling the company's lawsuit misguided and unlikely to succeed.
In a court filing on Friday, Ellison argued the law, which took effect on August 1, is narrowly tailored to address a specific harm. The measure prohibits website operators and software developers from allowing users to create realistic images depicting intimate body parts not shown in an original photo of an identifiable individual.
xAI, owned by Elon Musk, sued Minnesota in July, claiming the law violates the First Amendment by restricting protected expressive activity. The company contends the statute is overly broad and lacks exceptions for artistic, scientific, political, satirical, educational, medical, or religious images.
U.S. District Judge Donovan Frank in St. Paul will consider xAI's request for a preliminary injunction at a hearing on Wednesday. Last month, Frank declined an earlier bid by Musk to stop the law from taking effect but agreed to fast-track review.
The legal clash highlights a growing tension between AI innovation and state efforts to curb synthetic sexual imagery. Minnesota's law is the first of its kind in the nation, setting a potential precedent for other states.
What the Law Actually Bans
The statute targets a narrow technological act: using AI to add nudity to a real person's photo without consent. Ellison's filing emphasizes that the law regulates a tool, not speech. It does not criminalize drawings, paintings, or fictional characters.
xAI argues the law sweeps in benign images, such as people in shorts, shirtless men, and competitive swimmers. The company says penalties of up to $500,000 per violation create a chilling effect on legitimate expression.
Minnesota counters that the measure responds to a "staggering amount" of child sexual abuse material generated by AI products like Grok Imagine. The state's filing includes testimony from victims whose photos were used to create fake pornographic images without consent.
Grok's Mounting Legal Troubles
Musk's Grok chatbot has faced criticism for producing sexually explicit content. Regulators have demanded stronger safeguards. xAI has begun suing users who allegedly evade Grok's blockers to create nonconsensual sexual images.
The Minnesota case is one of several legal battles. Baltimore has sued xAI over sexual deepfakes. Tennessee minors have filed a similar suit. Despite new curbs, Grok reportedly still produces sexualized images, even when told subjects did not consent.
Ellison's filing argues that halting the law would leave victims unprotected while litigation proceeds. The state says xAI's own lawsuits against users undermine its claim that the technology cannot be controlled.
The case is X.AI LLC v. Keith Ellison, U.S. District Court, District of Minnesota, 26-cv-03425-DWF-DTS. xAI is represented by Robert Dunn of Eimer Stahl and Todd Noteboom of Stinson. Minnesota is represented by Peter Farrell and Janine Kimble.
Judge Frank's ruling on the preliminary injunction could signal how courts will balance free speech against emerging harms from generative AI. The outcome may influence similar legislation in other states.
