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Federal Court Denies xAI Request for Injunction Against Minnesota Nudification Law

Bot Mutiny | September 7, 2026

Judge Donovan W. Frank of the U.S. District Court for the District of Minnesota denied a motion for a preliminary injunction filed by xAI LLC on September 4, 2026. The AI developer, owned by Elon Musk, sought to block the enforcement of Minnesota Statute § 325E.91, also known as H.F. 1606. The law prohibits companies from allowing users to access technology to "nudify" images or videos of identifiable individuals without their consent. The ruling was first reported by CourtListener. It marks a significant legal setback for xAI, which argued that the state law violates the First Amendment. The court's decision allows Minnesota Attorney General Keith Ellison to continue enforcing the statute, which carries civil penalties of up to $500,000 per violation. ## The Scope of H.F. 1606 Minnesota's legislature passed H.F. 1606 in early 2026. The House approved it on April 23, followed by a unanimous Senate vote on April 29. Governor Tim Walz signed the bill on May 7, and it went into effect on August 1, 2026. The law defines "nudify" as the process where an image or video is altered or generated to depict an intimate part not present in the original. The statute applies when the resulting image is realistic enough that a reasonable person would believe the intimate part belongs to the identifiable individual. Intimate parts are defined by the state to include the primary genital area, groin, inner thigh, buttocks, or breast. The law includes a specific technical exemption. It doesn't apply when the service requires the "technical skill of a user" to perform the nudification. This targets tools that automate the process for general users. ## Legislative Record of Harm The court's memorandum opinion details the evidence the Minnesota legislature reviewed before passing the bill. During a February 19, 2026, committee hearing, three women testified about the harms they suffered after their likenesses were used to create realistic pornographic material. The perpetrator in that instance targeted over 80 women. Data provided by RAINN, an anti-sexual violence organization, indicated that 24 million people used nudification apps in a single month in 2023. The organization found that 95 percent of manipulated images were nonconsensual, sexually explicit, and featured women. The legislature also reviewed the impact on children. The Internet Watch Foundation (IWF) reported a massive increase in AI-generated child sexual abuse material. Reports to the IWF regarding generative AI content grew from 6,800 in the first half of 2024 to over 400,000 by June 2025. Another study cited in the court documents found that a single social media AI tool generated 3 million sexualized images in its first 11 days, including 23,000 images of children. ## xAI's Argument and Court Findings xAI produces the Grok family of models, including Grok Imagine. Users generate images by typing or dictating short descriptions. xAI argued that its tools are used for legitimate purposes like art, political satire, and religious imagery. The company claimed its terms of service already prohibit illegal or harmful activities and that it enforces these rules through account terminations and reporting to law enforcement. The State countered that xAI's self-regulation is insufficient. According to the court filing, the State cited at least three lawsuits against xAI alleging that photographs of children were used to create child pornography on the Grok Imagine platform. Judge Frank's order follows a July 31, 2026, denial of a temporary restraining order. The court had previously noted xAI's delay in bringing the motion as a factor in that initial denial. By denying the preliminary injunction, the court has signaled that the state's interest in preventing the documented harms of AI nudification outweighs xAI's immediate constitutional challenges. The full memorandum opinion can be accessed via CourtListener.