Court Rejects Musk's xAI Bid To Block 'AI Child Porn' Ban Carrying $500K Penalties per Image

A federal judge denied Elon Musk's xAI emergency request to block Minnesota's pioneering law targeting AI 'nudification' tools, allowing the measure to take effect on Saturday while the legal challenge continues. US District Judge Donovan Frank ruled that xAI waited too long to seek urgent relief, converting the request into a preliminary injunction motion with a hearing set for 19 August. The law imposes civil penalties of up to $500,000 per unlawful use and holds AI platforms liable, prompting xAI to limit its Grok Imagine tool for Minnesota users.

Court Rejects Musk's xAI Bid To Block 'AI Child Porn' Ban Carrying $500K Penalties per Image Judge Denies xAI's Emergency Request, Allowing Minnesota's Pioneering Law to Take Effect Elon Musk's artificial-intelligence company https://www.ibtimes.co.uk/elon-musk-spacexai-challenges-minnesota-ai-nudification-ban-1811380 failed to persuade a federal judge to temporarily block a Minnesota law that regulates AI tools used to create non-consensual sexually explicit images of real people, allowing the measure to take effect on Saturday while the broader legal challenge continues. US District Judge Donovan Frank on Friday denied xAI's request for an emergency injunction against what Minnesota has described as the first state law targeting AI "nudification" tools, finding that the company had waited too long to seek urgent relief. The statute imposes civil penalties of up to $500,000 £373,000 for each unlawful use of covered technology to digitally undress or sexualise an identifiable person without consent, with liability extending to AI platforms that provide the tools. Judge Cites Delay in Rejecting Emergency Request Frank's ruling focused primarily on the legal standard for emergency relief rather than the constitutionality of the law itself. 'xAI filed the motion on July 29, 2026, nearly three months after the law was signed, and only three days before the law is set to take effect,' the judge wrote. 'Such a delay in bringing the action and the motion suggests that harm is not immediate.' Rather than dismissing the case, Frank converted xAI's request into a motion for a preliminary injunction, with a hearing scheduled for 19 August. Minnesota Attorney General Keith Ellison must respond by 12 August. As a result, the law remains in force while the litigation proceeds. xAI has said it will limit the image-editing features of its Grok Imagine tool for users in Minnesota to avoid potential liability under the new law. What Minnesota's Law Prohibits The legislation targets AI tools capable of generating realistic non-consensual nude or sexually explicit images of identifiable individuals. Under the law, a person may not access or use software that digitally alters a photograph to depict intimate body parts that were not present in the original image if the resulting image would reasonably appear authentic. Unlike many existing laws, Minnesota's statute places legal responsibility not only on users but also on companies that provide the technology. Violations can result in civil penalties of up to $500,000 £373,000 per incident, alongside damages for emotional distress and other civil remedies. The measure passed with overwhelming bipartisan support, clearing the Minnesota House 132 to 1 and the Senate 65 to nil, driven by testimony about the technology's use in school cyberbullying, where girls have been targeted with fabricated explicit images https://www.ibtimes.co.uk/ai-misuse-queensland-fake-sex-work-posters-1811175 of themselves. The law does not create criminal offences. Enforcement is carried out by the Minnesota attorney general and through civil lawsuits brought by victims. The measure passed with overwhelming bipartisan support, receiving a 132-1 vote in the Minnesota House and unanimous approval in the Senate, following testimony that AI-generated nude images had been used to bully students, particularly girls, in schools. Following xAI's lawsuit, Minnesota Governor Tim Walz responded on social media, writing: 'See you in court, creep.' xAI Challenges Law on Free Speech Grounds xAI argues the law violates the First Amendment by restricting protected expression. In court filings, the company said the legislation 'imposes an overbroad, content-based ban on free speech and the tools of visual expression in a clumsy attempt to prohibit nudification.' The company said it does not oppose efforts to prevent the creation or distribution of non-consensual AI-generated nude images but argues the law is drafted too broadly and could apply to innocuous edited images, including photographs of people in swimsuits or shirtless men. Grok's Past Under Scrutiny Minnesota cited concerns about Grok's previous image-generation capabilities in opposing xAI's request for emergency relief. Earlier versions of Grok's image-generation system drew criticism after users reported it could generate sexualised images, including some that appeared to depict minors. xAI subsequently updated the system's safeguards, although reports indicated problematic outputs continued to surface in the months that followed. Attorney General Keith Ellison also pointed to other ongoing litigation involving xAI, including a proposed class action brought on behalf of five minors and lawsuits filed by families in Arkansas. State Representative Jessica Hanson, one of the bill's authors, said victims of AI-generated 'nudification' are disproportionately women and children and accused AI companies of profiting from technology that can facilitate exploitation. Constitutional Challenge Continues The court has not yet ruled on whether Minnesota's law is constitutional. That question will be considered during the preliminary injunction hearing on 19 August. The case is expected to test how far states can regulate AI-generated content while remaining consistent with First Amendment protections, an issue likely to become increasingly significant as generative AI tools become more widely available. © Copyright IBTimes 2025. All rights reserved.