Elon Musk’s xAI sued Minnesota Attorney General Keith Ellison on Monday, asking a federal court to block a new law restricting "nudification" tools before it takes effect Aug. 1. xAI Challenges Law On Free Speech The complaint says House File 1606 "imposes an overbroad, content-based ban on free speech and the tools of visual expression in a clumsy attempt to prohibit ‘nudification.’" xAI argues that creating images and videos counts as protected expression and that Minnesota cannot impose strict liability based solely on user output.

The statute bars operators of websites, apps and software from letting users alter images so identifiable people appear to expose intimate body parts.

Minnesota may seek penalties of up to $500,000 for each instance of unlawful access, download, or use.

Victims may also seek treble damages, punitive damages, and legal fees. xAI said those fines could compound rapidly.

Ten prohibited images could create $5 million in exposure, while 100,000 could trigger an "eye-popping $50 billion dollars," according to the complaint.