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Elon Musk's xAI Company Faces Off Against Minnesota in Federal Court

The state says more than half of victims do not know who made the images, so the law targets platforms that enable deepfakes.

  • On Wednesday, attorneys for Elon Musk's xAI argued in federal court to block Minnesota's law banning AI-generated nude images, seeking a preliminary injunction on First Amendment grounds.
  • Minnesota's law, HF 1606, took effect August 1, prohibiting platforms from allowing users to "nudify" images and imposing fines up to $500,000 per violation.
  • The Department of Justice filed a statement of interest Tuesday, arguing Minnesota's law exceeds federal restrictions and warning states "must be careful not to impose excessive measures that hinder American national and economic security."
  • District Judge Donovan Frank heard arguments Wednesday and took the request for a preliminary injunction under advisement, leaving the law in force while he prepares a ruling.
  • The federal filing reflects a broader Trump administration push for light-touch AI rules to avoid "50 discordant state ones," potentially defining the limits of state authority in regulating AI technology.
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Fox 9 broke the news in Minneapolis, United States on Wednesday, August 19, 2026.
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