Washington | October 3, 2026
A US federal appeals court has temporarily blocked Minnesota’s law restricting AI-generated fake nude images, after Elon Musk’s xAI challenged the measure in court.
The St. Louis-based 8th US Circuit Court of Appeals granted xAI’s request for an injunction, putting the law on hold while the company continues its legal challenge.
Minnesota’s AI Nudification Law
The law, which took effect on August 1, 2026, prohibits website operators, software developers and other service providers from allowing users to create certain realistic AI-generated intimate images involving identifiable people.
Minnesota introduced the measure to address the creation and distribution of non-consensual sexual imagery and other harmful AI-generated content.
xAI Challenges the Law
xAI argues that the Minnesota law violates First Amendment protections by restricting speech and expressive activity.
The company also said its Grok Imagine tool has safeguards intended to prevent users from creating sexualised or “nudified” images of real people. xAI has separately taken legal action against users it alleges attempted to bypass those safeguards.
A federal district court had previously rejected xAI’s request for a preliminary injunction in September, finding that the company had not demonstrated the level of harm required for emergency relief.
Appeals Court Puts Law on Hold
The appeals court’s latest order changes the immediate legal position by temporarily preventing enforcement of the Minnesota law while xAI’s appeal proceeds.
Minnesota Attorney General Keith Ellison’s office said it was disappointed with the ruling and indicated that the state would continue defending the law. Minnesota has argued that the legislation is intended to address harmful sexual imagery, including AI-generated material involving minors.
What Happens Next?
The appeals court’s decision is an interim development rather than a final ruling on whether Minnesota’s law is constitutional.
The case could become an important legal test for how US states regulate AI-generated sexual imagery while courts consider the balance between online safety, privacy, non-consensual imagery and First Amendment protections.
