A federal judge has denied xAI's request to stop a Minnesota law banning "nudify" apps from taking effect. The ruling means the law can be enforced while the underlying lawsuit continues in court.
U.S. District Judge Donovan Frank issued the decision just before the law was set to begin. Minnesota's ban is the first of its kind in the United States.
Nudify apps use artificial intelligence to alter photos so people appear nude or in sexual situations without their consent. Minnesota lawmakers passed the ban earlier this year to address the growing use of these tools.
Timing Played a Key Role in the Ruling
Judge Frank's decision focused heavily on when xAI filed its lawsuit. The law was signed months before xAI asked the court to step in.
According to Frank, xAI filed its request for a temporary restraining order on July 29, 2026. That was nearly three months after the law was signed and only three days before it was scheduled to take effect.
"Such a delay in bringing the action and the motion suggests that harm is not immediate," Frank wrote in the ruling.
The judge's reasoning suggests that if xAI truly faced urgent harm from the law, it would have acted sooner. This weakened the company's argument for emergency relief.
What xAI Argued in Its Lawsuit
xAI's lawsuit claims the Minnesota ban is too broad. The company argued the law is "overinclusive" and that better options exist to address the same concerns.
According to the company, less restrictive alternatives could achieve similar goals without the same level of restriction. The lawsuit is still active, and this ruling only decided whether the law could be paused while the case moves forward.
For now, the law stands. xAI will need to continue making its case in court if it wants the ban lifted or changed.
The dispute comes after earlier incidents connected to xAI's chatbot, Grok. Users of X, the social media platform now under SpaceX along with xAI, reportedly used Grok earlier this year to create and spread non-consensual sexualized images.
Those incidents led to outside scrutiny. California's Attorney General sent xAI a cease and desist order over the sexual deepfakes.
Indonesia also blocked access to Grok in response to similar concerns. The pattern of incidents drew attention from regulators in multiple countries, not just the United States.
Minnesota's law was introduced against that backdrop. Lawmakers pointed to the rise of AI tools capable of generating fake sexual images as the reason for the ban.
As of August 1, 2026, the law is now in effect across Minnesota. Companies operating nudify apps in the state must comply while xAI's broader legal challenge continues to play out in court.
