Minnesota’s first-of-its-kind ban on AI-generated fake nude images will remain in effect.
Elon Musk’s xAI had sought to block the law, arguing that it violates free-speech rights.
The company plans to appeal after a federal judge rejected its request for a preliminary injunction.
Minnesota’s ban on AI-generated fake nude images will remain in force after a US federal judge rejected Elon Musk’s artificial intelligence company xAI’s request to temporarily block the law, according to a Reuters report. The ruling allows the state to enforce the measure while xAI’s constitutional challenge moves forward.
US District Judge Donovan Frank said xAI had not shown that it would suffer sufficient harm while pursuing its lawsuit against the law. The company argues that the measure violates the First Amendment by restricting protected speech, while Minnesota says it is designed to stop the spread of nonconsensual sexual images created using AI.
1 August 2026
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The law, which came into effect on August 1, prohibits website operators, software developers and others from allowing users to use AI tools to create fake nude images of identifiable people without consent.
Judge Says Constitutional Issues Need Full Review
In his order, Frank said the case raises complex constitutional questions because of the rapid development of AI technology and the risks linked to its use. He said those issues required a full examination rather than being decided through an early-stage injunction.
xAI said in a court filing that it would appeal the decision to the 8th US Circuit Court of Appeals in St. Louis.
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Minnesota Attorney General Keith Ellison defended the law, saying it had received broad support from lawmakers. He said AI “nudification” tools had been used to create child sexual abuse material and harass people.
Grok Faces Scrutiny Over AI-Generated Images
The ruling is the latest legal development involving Musk’s AI business and sexually explicit content. Frank had earlier rejected Musk’s attempt in July to stop Minnesota’s law from taking effect, although he agreed to move quickly on the constitutional challenge.
Musk’s Grok chatbot has also faced criticism over its ability to generate sexually explicit images. Regulators have pushed for stronger safeguards and restrictions to limit the spread of illegal AI-generated material, according to the news agency.
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xAI has separately taken legal action against Grok users whom it accuses of bypassing the chatbot’s safeguards to create sexualised deepfake images of people without their consent.
The Minnesota law will remain in effect as xAI challenges it in court and prepares to appeal Frank’s latest order.
