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Elon Musk's xAI sues Minnesota over law banning apps that create non-consensual sexualized images.

Market News
28 Jul 2026
CNBC
View Source
Bearish
pluang ai news

Elon Musk's AI company xAI, now owned by SpaceX, has sued Minnesota Attorney General Keith Ellison to challenge a new state law banning apps that generate non-consensual sexualized images, known as "nudify" apps. The law, effective Saturday, imposes heavy fines for creating explicit deepfakes without consent, aiming to protect individuals from misuse of their images. xAI argues the law violates free speech by broadly banning certain visual expression tools and has filed similar suits against other states with restrictive AI content laws. The case highlights ongoing tensions between AI innovation and privacy protections as regulators seek to curb harmful uses of AI-generated content.

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