Judge Denies xAI's Request to Block Minnesota's Ban on AI 'Nudify' Apps

A federal judge has denied xAI's request to block Minnesota's state law banning AI-powered "nudify" apps, allowing the law to take effect, TechCrunch reported on August 1. The ruling is a notable early test of state-level AI regulation and a setback for xAI's broader First Amendment challenge.

What the Law Does

Minnesota's statute, passed earlier this year, prohibits the distribution of apps that use AI to "nudify" images - that is, to generate nude or sexually explicit depictions of real people without their consent. The law applies to app stores, developers, and operators of nudify services that reach Minnesota users. Violations are treated as a felony.

Despite a lawsuit from xAI, a Minnesota ban on apps that allow users to "nudify" images can move forward.

xAI's Argument

xAI had argued that the law is an unconstitutional restriction on speech and that its models - which it says can be used for legitimate purposes - should not be regulated by Minnesota specifically. The court rejected both arguments, ruling that the law targets a specific harm (non-consensual intimate imagery) rather than speech in general, and that Minnesota has the authority to regulate apps distributed to its residents.

The Broader Picture

The ruling is one of the first to test state-level AI law against a First Amendment challenge, and it is likely to be cited by other states drafting similar legislation. More than a dozen states have introduced nudify bills in 2026, and the federal TAKE IT DOWN Act already criminalizes some non-consensual intimate imagery at the national level. The decision also lands as the EU AI Act's labeling rules went into effect this week, and as several US platforms have begun labeling AI-generated content on their own.