xAI sues Minnesota, claiming new nudification law violates First Amendment

Key Points

• xAI filed a federal lawsuit challenging Minnesota's nudification law set for Aug. 1, 2026.
• The law imposes civil penalties from $5 million for ten infringing images up to $50 billion for a hundred thousand.
• Victims can sue AI providers over any individual output, increasing potential liability.
• xAI argues the statute violates the First Amendment by covering protected speech such as artistic and educational nudity.
• The company says it would rather rely on its terms of use banning CSAM and NCII than cripple Grok’s image‑editing features.
• xAI cites the federal Take It Down Act as a less restrictive means to address harmful content.