Minnesota's ban on AI "nudification" technology — apps and websites that use artificial intelligence to generate fake, sexualized images of real people without their consent — is set to take effect August 1. Before it can, Elon Musk's AI company xAI has sued the state, arguing the law violates the First Amendment.
The law lets people sue AI providers and imposes civil penalties of up to $500,000 per image for tools used to create non-consensual deepfake nudes. The Minnesota Legislature passed it nearly unanimously, and Attorney General Keith Ellison has pledged to defend it in court.
xAI's suit argues the law is an overbroad, content-based restriction on speech and on "the tools of visual expression." A central complaint, according to legal scholar Jeff Kosseff, is that the law makes AI companies strictly liable if someone misuses their technology to create a prohibited image — regardless of whether the company knew about the misuse or tried to prevent it. "If someone uses your technology to create this image, you can face a half million dollars in fines," Kosseff said.
Kosseff, an incoming law professor at the University of Minnesota who specializes in First Amendment issues around AI and technology, also flagged the law's definition of "intimate part" as a potential vulnerability — xAI's lawsuit argues the phrase is broad enough to sweep in ordinary images of people in swimsuits, shorts, or shirtless, not just nudity. The suit also raises concerns about how the ban could apply to satire or parody involving public officials. Kosseff predicted the case would see requests for a temporary restraining order or preliminary injunction within days.
The case isn't Minnesota's first brush with this fight: xAI previously challenged the state over a related AI deepfake law, and that earlier suit didn't stop the law from surviving a 2025 court challenge. xAI has also sued California over a similar nudification ban there.