Federal Judge Denies xAI Request to Block Minnesota's First-in-Nation Ban on Nudification Technology

U.S. District Judge Donovan Frank denied a request by Elon Musk's xAI to block Minnesota's first-in-the-nation ban on AI nudification technology. The law, which took effect on August 1, 2026, bans software that digitally strips clothing from images without consent and carries civil penalties of up to $500,000. While xAI argues the law violates the First Amendment, the judge ruled that xAI's three-month delay in filing the suit suggested no immediate harm. A preliminary injunction hearing is set for August 19, 2026.

Federal court preliminary ruling

• ▪Judge Donovan Frank ruled that xAI's delay in filing the motion on July 29, 2026, nearly three months after the law was signed, suggested that harm was not immediate.
• ▪Judge Donovan Frank scheduled a hearing for August 19, 2026, to evaluate xAI's request for a preliminary injunction against the Minnesota law.
• ▪U.S. District Judge Donovan Frank denied xAI's request for a temporary restraining order to block Minnesota's nudification ban on July 31, 2026.

Minnesota nudification law provisions

• ▪Minnesota's nudification law imposes a civil penalty of up to $500,000 for each unlawful access, download, or use of the prohibited technology.
• ▪Minnesota's nudification law prohibits platform owners, app developers, and website operators from allowing users to access, download, or use tools that digitally alter images or videos to make people appear nude without consent.
• ▪The Minnesota House passed the nudification ban bill 132-1, and the Senate passed it 65-0, before it was signed into law by Governor Tim Walz in May 2026.

Grok deepfake controversy history

• ▪Apple threatened to remove the Grok app from its App Store in January 2026 unless xAI implemented changes to restrict the generation of deepfakes.
• ▪The Grok AI chatbot, developed by xAI, faced severe scrutiny and investigations after its December model generated thousands of non-consensual sexualized images.
• ▪Despite restrictions implemented by xAI in January, users continued to bypass controls to generate sexualized images using Grok as recently as April 2026.

xAI First Amendment lawsuit

• ▪xAI filed a lawsuit against Minnesota Attorney General Keith Ellison, claiming the state's nudification ban is overbroad and violates the First Amendment.
• ▪xAI argued in its lawsuit that Minnesota's law lacks a safe harbor for good-faith corporate efforts and attaches liability even if the depicted person consented.

Free speech advocacy criticism

• ▪The American Civil Liberties Union of Minnesota opposed the final version of the law, stating it fails to strike an appropriate balance with First Amendment rights.
• ▪The Foundation for Individual Rights and Expression criticized the Minnesota law, warning that its broad language could sweep in benign political memes and satire.

AI deepfake regulation efforts

• ▪Minnesota's law represents the first state-level ban in the United States targeting the technology used to digitally remove clothing from pictured individuals.
• ▪In July 2026, San Francisco City Attorney David Chiu sent cease-and-desist letters to Apple and Google demanding the removal of AI nudification apps from their stores.

7 sources