See you in court, creep: Governor slams Elon Musk over…
SpaceXAI has filed a lawsuit against Minnesota over a new state law intended to curb AI-generated non-consensual nude images by imposing strict liability…
- Incident date
- Jul 2026
- Target
- multiple unidentified individuals
On July 29, 2026, SpaceXAI—an AI company owned by SpaceX, formerly known as xAI—filed a federal lawsuit challenging a new Minnesota law aimed at curbing AI-generated non-consensual nude images. The legal battle has sparked public confrontation, with Minnesota Governor Tim Walz publicly criticizing Elon Musk in response to the filing.
What happened
The dispute centers on Minnesota's House File (HF) 1606, which is scheduled to take effect on August 1, 2026. The legislation prohibits websites, apps, and software from enabling users to generate realistic AI-altered nude images of identifiable individuals. Under the law, companies face potential civil penalties of up to $500,000 for each violation, and victims are empowered to take legal action against the responsible platforms. The bill was introduced by state Senator Erin Maye Quade following a case where a man allegedly used social media photos to create explicit AI-generated content of over 80 women without their consent.
The lawsuit follows significant controversy surrounding the AI tool Grok, which faced criticism after reports suggested users generated large numbers of non-consensual sexualized images, including approximately 23,000 images involving children. In response to the backlash, the company stated it updated its safety systems and maintains a zero-tolerance policy regarding non-consensual nudity.
In its legal challenge, SpaceXAI argues that the Minnesota law is unconstitutional and overly broad. The company contends that the legislation imposes sweeping liability on AI providers regardless of existing safety measures and lacks a "safe harbor" for companies attempting to prevent misuse. Furthermore, SpaceXAI argues that the law’s definition of "intimate part" is so expansive that it could inadvertently restrict protected speech, including satire, art, educational content, and innocuous images like photos of people in swimwear. The company warned that the potential for $500,000 fines per violation creates an existential financial risk, suggesting that even 100,000 images could lead to $50 billion in total liability.