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Minnesota officials can fine technology companies that enable creation of AI-generated nude images of real people in violation of a new state law, after a federal judge declined to put it on hold as a lawsuit proceeds.
The ruling by Judge Donovan Frank goes against xAI, the company associated with Elon Musk that now is under the SpaceXAI name. It sued in July claiming Minnesota was infringing on free speech. The case itself is still pending, but the decision permits state regulators to impose fines of $500,000 per violation in the meantime.
“The state has enacted, democratically and nearly unanimously, a civil statute aimed at protecting the public from the undisputed harm stemming from AI-nudification technology and the resulting proliferation of photorealistic sexualized images,” the judge wrote.
He acknowledged the constitutional issues “are complex, particularly when considered in the context of this new technology and the risks that it poses to the public.” He said the matter will be fully examined as the case proceeds.
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Frank’s ruling notes the financial and psychological harm to people who are portrayed in the fake images of their intimate body parts. AI has also been used to create child sexual abuse materials. He said xAI waited too long to bring its lawsuit, which was filed just ahead of the Aug. 1 effective date.
Attorney General Keith Ellison said the ease of generating the images creates the potential for harm, particularly when it relates to child sex abuse materials.
“That repulsive behavior is not welcome in Minnesota,” Ellison said Friday. “My office and I will continue to vigorously defend the law and the Minnesotans it was designed to protect from xAI’s lawsuit.”
Attorneys for the company filed a notice it would seek review of the injunction by the 8th Circuit Court of Appeals.
In prior arguments to the court, xAI said it would suspend features for Minnesota users out of concern it would be fined.
A state motion to dismiss the company’s lawsuit is pending.