• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead

2

Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline

3

Mamdani’s pied-à-terre tax was designed to hit the wealthy, but it’s sending most New Yorkers to their estate lawyers

1

He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead

2

Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline

3

Mamdani’s pied-à-terre tax was designed to hit the wealthy, but it’s sending most New Yorkers to their estate lawyers
LawElon Musk

xAI sues Minnesota over law banning AI ‘nudification’ tech

By
Marc Levy
Marc Levy
,
Barbara Ortutay
Barbara Ortutay
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Marc Levy
Marc Levy
,
Barbara Ortutay
Barbara Ortutay
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
July 30, 2026, 9:43 AM ET
musk
Elon Musk attends the annual meeting of the World Economic Forum in Davos, Switzerland, Jan. 22, 2026. AP Photo/Markus Schreiber, File
Add Fortune on Google for similar content.

Elon Musk’s company xAI has sued Minnesota over the state’s first-in-the-nation law that bans “nudification” technology on websites and apps, potentially providing a test for how far states can go in constitutionally regulating the use of artificial intelligence.

Recommended Video

Musk’s company sued Monday in federal court, days before the law is set to take effect Saturday and make Minnesota the first state to try to outlaw the increasingly proliferating technology that lets people use AI to to create fake nude images of real people. The law was signed in May.

In the 38-page lawsuit, xAI — whose AI model chatbot and image generator Grok is available on the social media platform known as X, formerly Twitter, and elsewhere — said it does not contest the state’s interest in banning the distribution of AI-generated nude images of real people without their consent. But it said Minnesota’s law “extends far beyond that goal,” banning many constitutionally protected images and video and subjecting the company to a penalty of $500,000 per violation.

The lawsuit argues there is no “safe harbor” provision for companies that make good-faith efforts to prevent such images from being created by users, and that it covers images that were consented to by the depicted person, or even created by that person.

It also says the law’s definition of “intimate part” is overly broad, covering body parts that are routinely displayed in public.

In a statement, Minnesota Attorney General Keith Ellison said his office had not been served with the lawsuit yet or seen it.

“But I know that using AI to generate nude images of people against their will is appalling. There are plenty of worthy debates to have about AI policy. This is not one of them. AI nudification robs the target of their dignity and can cause immense harm on an emotional, personal, and professional level,” Ellison said.

State laws over election deepfakes have had mixed results in courts. California’s law was blocked over First Amendment speech protections. Minnesota’s law has thus far survived a 2025 court challenge by Musk’s company.

The law is distinct from state and federal laws that outlaw deepfakes, AI-generated sexually explicit images of people without their consent. Those laws typically penalize the people who use the tools to make these images, not the makers of the tools themselves. The federal Take it Down Act, passed last year, also requires websites and apps to implement a process to remove those images.

Texas last year took on nudification in a slightly different way. It made a website or app owner liable to civil damages from a person depicted in a nudified image — and potentially criminal penalties — if the website or app owner knew the person hadn’t given consent to its creation or fails to take it down promptly when told about it.

In the lawsuit, xAI said the terms of service for using Grok prohibit using it for “any illegal, harmful, or abusive activities” that violate someone’s privacy, including altering their image to nudify them or depict them in a sexually explicit image. It said it enforces those rules against violators through account suspensions or terminations, and by reporting suspected child sexual abuse content.

XAI also said earlier this year that it has “zero tolerance for any forms of child sexual exploitation, non-consensual nudity, and unwanted sexual content.”

After a global backlash over sexualized images of women and children, Grok said in January it will geoblock content if it violates laws in a particular place, preventing people from editing photos of real people in revealing clothing in places where that is illegal. Grok’s “spicy mode” had allowed users to create explicit content, leading to a backlash from governments worldwide.

“We have implemented technological measures to prevent the Grok account from allowing the editing of images of real people in revealing clothing such as bikinis, underwear and other revealing attire,” xAI said in a January statement.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Authors
By Marc Levy
See full bioRight Arrow Button Icon
By Barbara Ortutay
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Law

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Law

ponzi
Arts & Entertainmentfraud
Hollywood producer behind ‘Joker,’ dozens of other films indicted for $100 million Ponzi scheme
By Rebecca Boone and The Associated PressJuly 30, 2026
10 hours ago
interlochen
North AmericaJeffrey Epstein
Probe of exclusive Michigan boarding school finds Epstein and 47 others accused of abuse
By Ed White and The Associated PressJuly 30, 2026
10 hours ago
musk
LawElon Musk
xAI sues Minnesota over law banning AI ‘nudification’ tech
By Marc Levy, Barbara Ortutay and The Associated PressJuly 30, 2026
10 hours ago
f
LawCongress
RFK says he found Fauci’s diary in government archives as Fauci invokes the Fifth Amendment over 100 times
By Lauran Neergaard, Ali Swenson and The Associated PressJuly 29, 2026
1 day ago
Fauci accuses Rand Paul of ‘unhinged obsession,’ pleads Fifth at least 100 times on COVID origins despite full Biden pardon
North AmericaCongress
Fauci accuses Rand Paul of ‘unhinged obsession,’ pleads Fifth at least 100 times on COVID origins despite full Biden pardon
By Nick LichtenbergJuly 29, 2026
1 day ago
Costco’s $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
RetailCostco
Costco’s $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
By Sydney LakeJuly 29, 2026
1 day ago

Most Popular

He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead
Success
He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead
By Preston ForeJuly 29, 2026
1 day ago
Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
Retail
Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline
By Sydney LakeJuly 29, 2026
1 day ago
Mamdani’s pied-à-terre tax was designed to hit the wealthy, but it’s sending most New Yorkers to their estate lawyers
Real Estate
Mamdani’s pied-à-terre tax was designed to hit the wealthy, but it’s sending most New Yorkers to their estate lawyers
By Catherina GioinoJuly 30, 2026
17 hours ago
'Am I paying for the vibes?' Gen Z says it hates capitalism, but their spending patterns show they just don't like being ripped off
Retail
'Am I paying for the vibes?' Gen Z says it hates capitalism, but their spending patterns show they just don't like being ripped off
By Nick LichtenbergJuly 30, 2026
13 hours ago
Current price of oil as of July 30, 2026
Personal Finance
Current price of oil as of July 30, 2026
By Joseph HostetlerJuly 30, 2026
13 hours ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
6 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.