Musk’s xAI loses court bid to block Minnesota's AI ‘nudification’ ban

xAI logo and a court gavel appear in this illustration taken August 26, 2025. REUTERS/Dado Ruvic/Illustration 05 Sep 2026 12:08AM WASHINGTON, Sept 4 : Elon Musk's artificial intelligence company xAI on Friday failed to convince a federal judge to block a new Minnesota state law that restricts AI tools from creating realistic fake nude images.U.S. District Judge Donovan Frank rejected xAI's request for a preliminary injunction against the law, which took effect on Aug. 1 and prohibits website operators, software developers and others from allowing users to "nudify" images of identifiable people using AI technology. Source: Reuters