Elon Musk’s xAI sues Minnesota over its first-in-the-nation law banning ‘nudification’ technology

UNDATED-AP- Elon Musk’s company xAI is suing Minnesota over the state’s first-in-the-nation law that bans “nudification” technology on websites and apps. The lawsuit was filed Monday (July 27, 2026) in federal court and potentially provides a test for how far states can go in constitutionally regulating the use of artificial intelligence. xAI’s chatbot and image generator Grok is available online. It says Minnesota’s law is overly broad and bans many constitutionally protected images and videos. The law is distinct from state and federal laws that typically penalize people who use AI tools to create sexually explicit deepfakes. xAI says its terms of service for using Grok prohibit using it for illegal, harmful, or abusive activities, including nudification.