xAI, the artificial intelligence company founded by Elon Musk, has filed a lawsuit against Minnesota Attorney General Keith Ellison, challenging a new state law that prohibits "nudification" technology. The lawsuit, filed in federal court on July 27, 2026, contends that the statute, set to take effect on August 1, 2026, imposes an unconstitutional restriction on free speech.
The law, officially known as HF 1606, is the first of its kind in the nation and aims to ban the creation and distribution of AI-generated non-consensual intimate images. It holds owners and operators of websites, applications, and other services strictly liable if users employ their platforms to alter or generate images depicting "intimate parts." Violators face civil penalties of up to $500,000 per violation, with potential for additional damages awarded to victims.
xAI argues that while it does not dispute Minnesota's interest in preventing the dissemination of non-consensual AI-generated nude images, the law extends far beyond this goal. The company asserts that the statute is "overbroad" and "content-based," encompassing a wide range of constitutionally protected speech and visual expression. According to the lawsuit, the law's definition of "intimate part" is too broad, potentially including depictions of men without shirts or individuals in swimsuits, which are commonly displayed in public.
The complaint further states that the law lacks a "safe harbor" provision for companies that implement robust controls to prevent misuse of their AI tools. xAI claims it is exposed to liability even if users create images of themselves or individuals from whom consent was obtained. Given the strict liability and severe penalties, xAI asserts it has "no practical choice but to restrict Grok Imagine's image-editing features in various ways" for Minnesota residents once the law takes effect.
The lawsuit cites the creation of millions of sexually explicit deepfakes, including images of minors, generated by Grok in early 2026 as a point of contention. However, xAI maintains that its terms of service prohibit illegal or harmful activities, including the use of a person's image for non-consensual nudity.
Minnesota Attorney General Keith Ellison stated that his office had not yet been served with the lawsuit but acknowledged the seriousness of AI-generated non-consensual intimate images. He commented that AI nudification "robs the target of their dignity and can cause immense harm on an emotional, personal, and professional level." Governor Tim Walz, who signed the bill into law, responded to news of the lawsuit by stating, "See you in court, creep."
The law, which received broad legislative support with near-unanimous votes in both the House and Senate, defines "nudification" as altering or generating an image or video to depict an "intimate part" that was not originally present, in a manner so realistic that a reasonable person would believe it. An exemption exists if the technology requires significant technical skill from a human creator. The funds collected from civil penalties are designated for grants to organizations providing services to victims of sexual assault, crime, domestic violence, and child abuse.
xAI is seeking a declaration that HF 1606 is unconstitutional and requests preliminary and permanent injunctions to prevent its enforcement.