Elon Musk's artificial intelligence company has taken Minnesota to federal court days before the state's ban on AI 'nudification' tools was due to take effect. xAI, now formally known as SpaceXAI following its February merger with Musk's rocket company, filed suit against Attorney General Keith Ellison on Monday, arguing the statute amounts to an unconstitutional 'content-based ban on free speech and the tools of visual expression'.
The law, House File 1606, takes effect Saturday, 1 August 2026, and carries civil penalties of up to £370,000 ($500,000) per unlawful image. xAI's complaint warns a platform whose users produced 100,000 such images could face liability of roughly £37 billion ($50 billion).
