Elon Musk's AI company sues Minnesota over law banning fake nude images

xAI, the company behind the Grok chatbot, sued Minnesota on July 29, 2026, days before a first-of-its-kind law takes effect August 1. The law bans using AI to create fake nude images of people. xAI argues the ban is too broad and that such images are protected free speech. Penalties reach $500,000 per violation, and individuals can sue.