Wednesday, July 29, 2026

An Attack On His Core Business Model

And you thought it was cars and rockets.
Elon Musk’s xAI, now owned by SpaceX, sued Minnesota Attorney General Keith Ellison to challenge a law that would ban so-called nudify apps in the state.

In their complaint, filed in a federal court in Minnesota on Monday, attorneys for xAI wrote that the statute “imposes an overbroad, content-based ban on free speech and the tools of visual expression in a clumsy attempt to prohibit ‘nudification.’”

The Minnesota law, which goes into effect on Saturday, targets apps and websites that give people the ability to generate non-consensual sexualized imagery, levying $500,000 fines each time a user creates explicit deepfakes. The law, passed in April, was spearheaded by Minnesota state Sen. Erin Maye Quade after she learned about a man who created sexualized images and videos of of over 80 women he knew using their social media photos without their consent.

Lawyers for xAI argued that the law violates First Amendment protections and said the penalties are too steep, potentially costing a business whose users created 100,000 prohibited images “an eye-popping $50 billion dollars.”
Though, being honest and not just snarky, he might even be right (I have no idea) about it being overbroad. The new internet censorship (age verification) is getting ugly. Neither Musk nor nudify apps inspire much sympathy, but doesn't mean this precise legislation is good (again, I have no idea!).