Elon Musk’s xAI is suing to avoid legal liability under Minnesota’s new law, which could fine the company up to $500,000 for each harmful AI-generated image. The lawsuit comes as arrests of Grok users accused of creating child sex abuse materials (CSAM) have triggered multiple lawsuits from victims seeking changes to the AI tool. xAI argues that the law’s strict liability and lack of safe harbor make it impossible to operate without restricting its image-editing features. The company claims the law is unconstitutional, arguing it broadly criminalizes protected speech such as artistic or educational content. xAI also contends that Minnesota’s definition of 'intimate parts' is overly broad, potentially targeting benign images like people in swimsuits or bikinis.
The law, set to take effect on August 1, threatens firms like xAI with severe penalties for each harmful output. xAI said it would update Grok to block harmful outputs if the law is enforced, but prefers to leave the tool unchanged and rely on its terms of use to deter misuse. xAI also argued that the law’s penalties are excessive, with a single user requesting ten images in violation of the statute facing potential fines of up to $5 million. Minnesota’s attorney general, Keith Ellison, confirmed the state will defend the law to prevent abhorrent outputs that have allegedly caused trauma to victims and their families. xAI did not respond to Ars’ request for comment.
Source: arstechnica
