SpaceXAI, previously known as xAI, has initiated legal action against Minnesota Attorney General Keith Ellison. This lawsuit challenges a groundbreaking state law designed to outlaw applications and websites capable of generating nonconsensual intimate images. The legislation also proposes hefty fines for developers each time users create sexual deepfakes. Approved by Governor Tim Walz earlier this year, this law is set to come into effect in August.
In its legal complaint, SpaceXAI asserts that the law constitutes an “overbroad, content-based ban on free speech and the means of visual expression, in an awkward effort to curb ‘nudification.'” The company clarifies that it does not dispute Minnesota’s aim to prevent the distribution of artificially created nude images of individuals without their consent. it argues that the law “overreaches beyond that objective, putting a wide range of protected speech at risk of civil penalties and governmental action.”
This legal battle follows significant scrutiny faced by the company earlier this year after allegations surfaced regarding its users creating sexualized images from photos of real women and children. Various authorities, including California’s regulators, the UK’s Ofcom, the European Commission, and Ireland’s Data Protection Commission, have launched investigations into the company. Despite implementing measures to curb nonconsensual deepfakes, its platform still enabled users to generate undressed images.
SpaceXAI emphasizes in its complaint that it prohibits users from producing nude or sexualized images of individuals without their consent. The company has taken legal action against users who circumvent its comprehensive technological safeguards. Recently, it filed a lawsuit against a South Carolina user who used Grok to create nonconsensual intimate imagery from actual photos of multiple adults and minors.
The proposed law would impose a staggering $500,000 fine on developers each time a user generates a nonconsensual adult deepfake using their applications. SpaceXAI argues that, under this regulation, it would have “no practical choice but to limit Grok Imagine’s image-editing capabilities in various ways when the statute takes effect on August 1, 2026.” The company contends that “protected speech that was freely accessible prior to the law’s implementation will ultimately be restricted.” It is seeking a court declaration that the law is unconstitutional and aims to prevent the state from enforcing it.
In reaction to the lawsuit, Attorney General Ellison expressed on X that while many discussions about AI are essential, this particular matter is not one of them. He stated, “AI nudification robs the target of their dignity and could cause them immense harm on many levels.” Governor Walz added succinctly, “See you in court, creep.”
Using AI to generate nude images of people against their will is appalling.
There are plenty of worthy debates to have about AI. This is not one of them. AI nudification robs the target of their dignity and could cause them immense harm on many levels.
I’ll see X in court. https://t.co/OcsZPkVNmk
— Attorney General Keith Ellison (@AGEllison) July 28, 2026

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