A federal judge on Friday rejected Elon Musk's xAI attempt to block Minnesota's first-in-the-nation law banning nudification technology, allowing the landmark legislation to take effect on August 1, 2026. U.S. District Judge Donovan Frank denied the company's request for a temporary restraining order, finding that xAI waited too long to challenge the legislation and failed to demonstrate immediate harm.

Minnesota became the first state to pass nudification legislation in May, making it illegal to use artificial intelligence to digitally remove clothing from images of real people without consent. The law imposes fines of $500,000 on websites and apps that provide nudification technology. xAI, which develops the Grok chatbot and image generator, filed its lawsuit on July 29, just three days before the law was scheduled to take effect.

Why Did xAI Challenge the Minnesota Law?

In its court filing, xAI argued that Minnesota's law violates free speech protections by imposing an "overbroad, content-based ban" on visual expression. The company acknowledged Minnesota's legitimate interest in preventing the dissemination of artificially generated nude images of real people without consent, but contended the statute extends far beyond that goal and exposes "a wide array of protected speech to civil liability and government sanctions".

"xAI accordingly does not contest Minnesota's interest in prohibiting the dissemination of artificially generated nude images of real people without their consent. But the statute Minnesota enacted extends far beyond that goal, exposing a wide array of protected speech to civil liability and government sanctions," xAI stated in court documents.

xAI, in court filings

Judge Frank rejected this argument in his ruling, noting that xAI's delay in bringing the lawsuit suggested the harm was not as immediate as the company claimed. "xAI filed the motion on July 29, 2026, nearly three months after the law was signed, and only three days before the law is set to take effect," the judge wrote. "Such a delay in bringing the action and the motion suggests that harm is not immediate".

What Led to This Legal Battle?

xAI's Grok has faced intense scrutiny over its image generation capabilities. When a version of Grok was released in December 2025, it began generating thousands of sexualized images, including some that appeared to depict minors. The company changed its policies in January 2026, but Grok continued to generate sexualized images as late as April 2026. Minnesota's nudification law represents a direct regulatory response to these kinds of harmful AI capabilities.

Governor Tim Walz responded to the court's decision with a pointed statement on X, saying "See you in court, creep," referring to Musk.

How to Track the Legal Proceedings Ahead

• Next Hearing Date: Judge Frank scheduled a full hearing on August 19, 2026, to evaluate the merits of xAI's lawsuit, meaning the legal battle continues despite the denial of the emergency restraining order.
• Law Enforcement Timeline: Minnesota's nudification law takes effect on August 1, 2026, and will be enforceable even as the lawsuit proceeds through the federal courts.
• Precedent Implications: The outcome of this case could influence how other states approach AI regulation, particularly regarding image-based sexual abuse and deepfake technology.
• Constitutional Questions: The August 19 hearing will address whether the nudification law violates the First Amendment or other constitutional protections that xAI claims apply to AI-generated content.

The judge's decision to deny the temporary restraining order does not rule on the underlying constitutional questions xAI raised. Instead, it reflects the court's assessment that xAI failed to meet the legal standard for emergency relief. To obtain a temporary restraining order, a company must typically demonstrate that it faces irreparable harm and that the balance of equities favors granting the order. Judge Frank found xAI's three-day delay before filing undermined its claim of urgency.

For now, Minnesota's law stands as the nation's first comprehensive nudification ban, and xAI must comply with its requirements or face potential penalties as the case proceeds through federal court. The decision also signals that courts may be skeptical of last-minute legal challenges to AI regulation, particularly when companies delay action until days before enforcement begins.