xAI sued Minnesota's AG two days before its nudification ban took effect, warning of $50B exposure.

xAI sued Attorney General Keith Ellison to block the first-in-the-nation ban on tools generating non-consensual sexualized imagery, which carries civil penalties up to $500,000 per violation; the 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 terms already prohibit nudification and that it enforces via suspensions and CSAM reporting. xAI also faces a proposed class action alleging Grok itself produced non-consensual explicit imagery.