What just happened? You'd imagine that nobody would object to a Minnesota law that would ban nudify apps in the state, but one company is so opposed to the plan that it's filed a lawsuit against the state's attorney general. Unsurprisingly, that company is Elon Musk's xAI, now called SpaceXAI.

The Minnesota law, which comes into effect this Saturday, would ban apps and websites that allow users to generate non-consensual sexualized imagery. The companies behind these services would be fined $50,000 every time someone creates one of these images.
xAI writes in its complaint that the law is an overbroad, content-based ban on free speech and the tools of visual expression in a "clumsy attempt to prohibit nudification." Lawyers for the firm say that in addition to being a violation of free speech, the fines are too high. It noted that a business whose users generated 100,000 of these images would be charged $50 billion.
xAI insists that it doesn't have an issue with Minnesota's "interest in prohibiting the dissemination of artificially generated nude images of real people without their consent," but it claims the law "extends far beyond that goal, exposing a wide array of protected speech to civil liability and government sanction."
– Tiffany Fong (@TiffanyFong) January 4, 2026
Given xAI's history when it comes to this sort of thing, the lawsuit isn't a big shock. Its chatbot Grok made plenty of headlines at the start of the year for the thousands of "undressing" deepfakes it was generating every hour, including images of minors.
The company is still facing a proposed class-action lawsuit from victims. That suit also claims that xAI failed to share information with authorities about alleged perpetrators who used Grok to create nudified images of the victims. It also faced investigations in the UK and EU over its abilities.
xAI says in its complaint that it strictly prohibits its users from generating nude or sexualized images of people without their consent, adding that it has filed suit against users who evade its extensive technological blockers to generate such images. It recently sued a South Carolina user for using Grok to create intimate images of adults and minors.
Musk's company says that if the law comes into effect in its current form, it will have no choice but to restrict Grok Imagine's image-editing features in various ways. xAI added that "protected speech freely available before the law takes effect will thus be chilled." It requests that the court declare the law unconstitutional and prevent the state from enforcing it.
– Attorney General Keith Ellison (@AGEllison) July 28, 2026
Responding to the suit, Minnesota Attorney General Keith Ellison wrote that "There are plenty of worthy debates to have about AI. This is not one of them. AI nudification robs the target of their dignity and could cause them immense harm on many levels." He said he'll see xAI in court. Governor Tim Walz went for a more RoboCop-like "See you in court, creep."