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ai#xAI#AI regulation#deepfake#nudify apps#Minnesota law#digital rights

Judge denies xAI's bid to block Minnesota ban on 'nudify' apps

2 August 2026Β·TechCrunchΒ·πŸ€– Summarized by Sovin AI

A federal judge has denied xAI's request to block a Minnesota law banning apps that allow users to create fake nude images of people. The ruling means the state's ban can move forward despite xAI's lawsuit challenging it. The decision marks a significant step in regulating AI-powered tools that enable non-consensual intimate imagery.

A federal judge in Minnesota has rejected Elon Musk's AI company xAI's request for a preliminary injunction that would have halted the enforcement of the state's law banning so-called 'nudify' applications. The law prohibits apps and tools that use artificial intelligence to digitally remove clothing from images of real people without their consent, and the ruling allows it to remain in effect while the broader legal battle continues.

xAI had argued in its lawsuit that the Minnesota law violated the First Amendment of the United States Constitution, claiming it amounted to an unconstitutional restriction on free speech. The company contended that such tools could have legitimate uses and that an outright ban would be overly broad and disproportionate. The judge, however, was not persuaded, finding that the state's interest in protecting individuals from non-consensual intimate imagery outweighed xAI's free speech concerns.

The ruling has been welcomed by digital rights advocates and survivors of so-called 'deepfake pornography,' a growing phenomenon in which AI-generated fake nude images are used to harass, humiliate, or coerce individuals, disproportionately targeting women. Minnesota joins a growing number of U.S. states that have enacted or are pursuing legislation to curb the spread of harmful AI-generated content.

The case highlights the ongoing legal tension between AI companies seeking broad operational freedoms and lawmakers attempting to protect citizens from the misuse of powerful generative technologies. Legal experts say the outcome could set important precedents for how similar legislation is challenged in other jurisdictions and potentially at the federal level. xAI has not yet indicated whether it intends to appeal the ruling.