xAI has filed a federal lawsuit against Minnesota, seeking to block a new state law, HF 1606, that targets AI-generated images. The lawsuit, lodged in the U.S. District Court for the District of Minnesota, contends that the law constitutes an overbroad restriction on free speech and visual expression, extending beyond its stated purpose of prohibiting nonconsensual nude images of real individuals.
The law, scheduled to take effect on Saturday, imposes strict liability on platforms for the generation of realistic AI images depicting real people with body parts they have not exposed. Each violation carries a potential fine of up to $500,000. xAI argues that the law’s definition of “intimate part” is excessively broad and holds platforms strictly liable even for consensual or private image generation, irrespective of whether the image is ever shared.
According to xAI’s assertions, the statute adopts its definition of “intimate part” from a criminal sexual contact statute, which was originally intended for nonconsensual physical contact rather than image generation. The company claims this expansive definition could lead to liability for generating images such as a shirtless politician or a woman in a swimsuit, even if intended for political satire or other protected forms of expression.
xAI acknowledges Minnesota’s interest in preventing the dissemination of artificially generated nude images of real people without consent. However, the company maintains that HF 1606 exceeds this objective and exposes a wide range of protected speech to civil liability and government sanctions. The lawsuit also asserts that the law lacks a scienter requirement, meaning companies could be held liable even if users circumvent filters designed to prevent the generation of harmful content.
Minnesota’s HF 1606 was passed with significant bipartisan support, receiving a 132-1 vote in the House and a 65-0 vote in the Senate. Senator Erin Maye Quade has indicated that the law’s prohibition on consensual images was intentional. Minnesota Attorney General Keith Ellison has stated that AI-generated “nudification” “robs targets of dignity and can cause immense harm.”
This legal challenge underscores the increasing friction between AI developers and regulatory bodies concerning the creation and distribution of synthetic media. xAI is requesting a federal judge to halt the law’s implementation. This action follows similar legal challenges by xAI, including a lawsuit against Colorado’s AI law on First Amendment grounds in April. Furthermore, xAI’s image generation tools have faced scrutiny and legal actions in other jurisdictions, with entities like the city of Baltimore and private individuals filing lawsuits against the company over deepfake outputs.
The federal TAKE IT DOWN Act, enacted in May 2025, addresses nonconsensual intimate deepfakes but includes different stipulations, such as requiring proof of nonconsent and actual distribution, employing a narrower definition of body parts, and providing exceptions for educational and medical content. xAI suggests this federal legislation offers a more suitable framework.
It remains uncertain whether a federal judge will grant xAI’s request to block HF 1606 before its effective date. The resolution of this lawsuit could have substantial implications for the future of AI regulation in Minnesota and potentially establish precedents for other states confronting comparable issues.
Broader Context
Source materials place the factual news in this context: Grok’s image tools ran into trouble almost immediately after their late July 2025 launch, generating deepfakes with simple text prompts, prompting regulatory probes across Europe, Australia, and multiple US states.
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