Minnesota’s groundbreaking law targeting AI-generated fake nude images will remain in effect after Elon Musk’s xAI failed to persuade a federal court to halt the measure while its constitutional challenge moves forward.
A federal judge rejected xAI’s request for a preliminary injunction against the law, which took effect on August 1. The legislation prohibits website operators, software developers and others from enabling users to use artificial intelligence to digitally “nudify” identifiable individuals.
xAI has argued that the law infringes on free speech protections under the U.S. Constitution. Minnesota, however, maintains that the measure is narrowly designed to address the growing misuse of artificial intelligence in creating and spreading non-consensual sexual imagery.
The court found that xAI had not demonstrated the level of immediate harm required to justify blocking the law before the wider legal challenge is decided.
The judge acknowledged that the dispute raises significant constitutional questions, particularly because of the rapid development of AI technology and the risks associated with its misuse. Those issues, the court said, would receive fuller consideration as the case progresses.
xAI has indicated that it plans to challenge the ruling before the 8th U.S. Circuit Court of Appeals.
Minnesota Attorney General Keith Ellison defended the legislation, describing it as a measure that received broad bipartisan backing from state lawmakers.
Ellison said AI-powered nudification tools had been used for deeply harmful purposes, including the creation of sexual material involving minors and the harassment of individuals through fabricated explicit images.
The latest ruling follows an earlier decision in which the court declined to stop the law from taking effect, although it agreed to speed up consideration of the legal challenge.
The case comes amid wider scrutiny of AI systems capable of generating sexually explicit or manipulated images. Musk’s Grok chatbot has previously faced criticism over concerns surrounding the creation of explicit AI-generated content, while regulators in different jurisdictions have pushed for stronger safeguards against illegal and non-consensual material.
xAI has also taken action against users it alleges have attempted to bypass Grok’s restrictions in order to generate sexualized deepfakes of individuals without their consent.
For now, Minnesota’s law remains operational, setting the stage for a broader legal battle over where free speech protections end and state efforts to curb harmful AI-generated content begin.
