InstantWhyThe case
CNBC reports that xAI, Elon Musk's artificial intelligence company, has filed a lawsuit against Minnesota over a state law that would ban so-called nudify apps—software that uses AI to generate fake nude images of people without their consent. The report states xAI is now owned by SpaceX, though the ownership structure has not been independently confirmed. Neither xAI nor Minnesota officials have publicly commented on the litigation.
Why it matters
States including Minnesota have moved to ban apps that create fake intimate images, which have been used to harass women and minors, while AI companies have argued some restrictions could sweep too broadly and limit legitimate speech or research. The case could set a precedent for how courts balance free expression claims against laws targeting specific harmful uses of generative AI.
Background
Minnesota is one of several states that have passed or proposed laws targeting deepfake pornography and nudify apps in the past two years, as the technology has become widely accessible. The legal challenge comes as tech platforms face mounting pressure over AI-generated content; Apple has faced multiple lawsuits over fraudulent apps that bypassed its review process, including a complaint in July over Bitcoin scams and another over a crypto wallet scam that allegedly cost users over a million dollars. xAI, founded by Musk in 2023, develops the Grok chatbot and has positioned itself as a competitor to OpenAI and Anthropic.
What happens next
The lawsuit will test whether state bans on specific AI applications can withstand First Amendment challenges. Minnesota will need to defend the law's scope and demonstrate that it targets unprotected conduct rather than speech. Other states watching the case may adjust their own legislation depending on the outcome.
- ✓Detected and written at 2026-07-28 23:57
- ✓First reported by CNBC
- ✓Written from public facts in our own words — never a copy
- ✓Published as fast as possible; our team holds editorial responsibility
Sources
- CNBC — Technology: https://www.cnbc.com/2026/07/28/spacexs-xai-sues-minnesota-over-law-to-ban-nudify-apps-.html
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