xAI Sues Minnesota's AG Two Days Before Its Nudification Ban Takes Effect, Warning of $50B Exposure

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xAI sued Attorney General Keith Ellison to block Minnesota's first-in-the-nation ban on tools that generate non-consensual sexualized imagery, which takes effect Saturday and carries civil penalties up to $500,000 per violation; xAI's filing warns aggregate exposure could reach $50 billion and calls the statute an 'overbroad, content-based ban on free speech and the tools of visual expression.' The company simultaneously argues Grok's own terms already prohibit nudification and that it enforces via suspensions and CSAM reporting. xAI is also facing a proposed class action alleging Grok itself produced non-consensual explicit imagery, including a suit from Ashley St. Clair.