xAI Sues Minnesota, Challenging "Nude" AI App Ban

According to CNBC, Musk's xAI (now merged into SpaceX) filed a lawsuit with the Minnesota federal court this Monday, challenging a state law set to take effect this Saturday—the law prohibits generating AI-generated sexualized images without the subject's consent ("nudify" apps), with fines of $500,000 per violation. xAI's legal team argues the law "imposes overly broad content restrictions on freedom of speech and visual expression tools," violating the First Amendment of the U.S. Constitution, and pointed out that if users generate 100,000 violating images, the company would face exorbitant fines of up to $50 billion. It is worth noting that xAI is currently also facing a class-action lawsuit alleging its Grok AI was used to generate child sexual abuse material (CSAM).