The summer in Minnesota has become a pivotal moment as a tech company takes on a new state law. xAI, the name now adopted by Elon Musk's former AI division, is suing to block a rule that prohibits nudify apps. These are tools that use AI to create nonconsensual intimate images.
Banning AI-generated nonconsensual imagery
Signed into law by Gov. Tim Walz in May 2026, the rule is scheduled to begin in August of that year. It targets developers who enable users to produce nonconsensual intimate images. The law imposes a $500,000 fine for each instance where such AI-generated content is created using the platform.
xAI argues the law is an unconstitutional attack on free speech, describing it as too broad and overreaching. The company claims it goes beyond protecting people’s rights and infringes on legitimate expression.
xAI says it is doing its part
xAI claims to have strong safeguards to prevent users from generating nonconsensual nude or explicit images. The company has already filed legal action against an individual in South Carolina who used Grok, its AI tool, to create such content using real photos of adults and minors.
Nonetheless, the law could force xAI to limit Grok’s image-editing features, the company says. It argues this would block users from engaging in protected expression even when their use is not against the company’s policies.
State says dignity and harm matter
Minnesota Attorney General Keith Ellison has pushed back, writing on X: 'AI nudification robs the target of their dignity and could cause them immense harm on many levels.' Gov. Walz responded with a pointed message: 'See you in court, creep.'
This case is more than a legal clash between a tech company and a state. It’s being watched as a test of how AI laws might evolve in the U.S. The decision could set precedents affecting privacy, innovation, and free speech.