The US Department of Justice has stepped into a court fight on the side of Elon Musk’s xAI. It is backing the company’s challenge to a Minnesota law that bans AI “nudification” tools. A federal judge heard arguments on Wednesday and said he would rule soon, according to Courthouse News Service.

xAI wants a preliminary injunction to block the law while its lawsuit proceeds. The company sued Minnesota in July, arguing the statute violates the First Amendment. The case is X.AI LLC v. Keith Ellison, the state’s attorney general, before Judge Donovan Frank in the District of Minnesota.

The Justice Department filed a statement of interest on 18 August. It did not take a side on the injunction itself. Instead, it argued that the Minnesota law reaches further than federal law. It also warned that heavy state rules could slow the AI industry.

What the law does

The statute, known as HF 1606, took effect this month. It bars anyone who owns or controls a website, app or software from letting users “nudify” or sexually alter images using AI, according to the bill text. Breaking the rule carries penalties of up to $500,000.