Elon Musk's artificial intelligence company xAI has filed a federal lawsuit against the state of Minnesota, challenging a first-of-its-kind law set to take effect Saturday that would ban "nudification" technology — AI tools that generate fake nude images of real people. xAI argues the law goes beyond its stated goal of protecting people from non-consensual imagery, contending it also restricts constitutionally protected content and lacks protections for companies that make good-faith efforts to prevent misuse, while exposing them to fines of up to $500,000 per violation. The case is being watched as a significant test of how far US states can constitutionally regulate AI platforms, with Minnesota Attorney General Keith Ellison defending the law as a necessary safeguard against a technology he says robs victims of their dignity.