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Courthouse News reports that U.S. District Judge Donovan Frank denied xAI’s request for a preliminary injunction against Minnesota’s HF 1606, which prohibits websites, apps and software from allowing users to create AI-generated sexual alterations of images. The law took effect in August and carries penalties of up to $500,000.
Courthouse News reports that Frank ruled xAI had not shown it would suffer irreparable harm if the statute remained active. The judge emphasized that xAI waited until three months after the law took effect, and only three days before the motion was filed, to seek preliminary relief. He wrote that a well-resourced company genuinely facing irreparable harm would likely have acted sooner.
According to the report, xAI argued that it faced commercial injury from having to design, test and deploy geographically targeted controls in Grok Imagine, its image-and-video generation . Frank said xAI acknowledged that the adjustment had already been made and provided only vague support for claims of substantial future costs. He also said monetary penalties could be recovered if the law were later invalidated.
The report says the judge cited xAI’s terms of service, which prohibit nonconsensual nude or sexualized images, as well as Minnesota officials’ argument that self-policing is insufficient. Courthouse News also reports that the judge referenced a fund of more than $500 million that SpaceX, described as xAI’s parent company, set aside for litigation losses linked to Grok Imagine’s “Spicy” and “Unhinged” modes. xAI and the Minnesota Attorney General’s Office did not respond to the outlet’s requests for comment.
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The ruling keeps Minnesota’s restrictions in force and underscores a legal dispute over whether platforms must prevent harmful AI-generated imagery before it spreads. Courthouse News says the judge viewed the harms from nonconsensual sexualized images as distinct enough to justify state action, while rejecting xAI’s argument that compliance costs and possible penalties amounted to irreparable harm. The order does not resolve xAI’s broader legal challenge or establish whether the statute will ultimately survive review.
The decision allows Minnesota’s law to remain operational while the constitutional and statutory issues are litigated. Courthouse News reports that Frank characterized the measure as a direct response to harms associated with AI nudification and said the state could conclude that addressing violations only after images circulate is inadequate.
The ruling may matter beyond Minnesota because it tests how courts evaluate platform obligations for generative-image systems that can produce sexualized alterations quickly from short prompts. The report does not establish how other courts will treat similar laws, whether the statute will be upheld on the merits, or whether its penalties will be imposed in practice.
Courthouse News reports that the judge cited legislative-hearing testimony from three women who said realistic pornographic material had been created using their likenesses, including the likenesses of more than 75 other women. The outlet also says hearing materials indicated that more than 95% of manipulated images in 2023 were nonconsensual, sexually explicit and featured women. These figures are reported claims cited by the court, not independently confirmed findings in this article.
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The next significant development is the continuation of xAI’s underlying lawsuit and any appeal or further ruling on HF 1606. The report does not state whether xAI will appeal, how the company’s geographically targeted controls operate, or whether Minnesota has begun enforcing penalties. It also does not independently verify the testimony, statistics or internet-watch-group estimates cited in the ruling.
The underlying lawsuit remains unresolved. The report does not provide a schedule for merits briefing, a trial, or a final ruling, and it does not say whether xAI plans to appeal the denial of preliminary relief.
Enforcement details are also unknown. The report identifies potential penalties of up to $500,000 but does not say whether Minnesota has issued violations, how regulators would identify prohibited activity, or how the law applies to services operating across state lines.
The judge’s discussion of child sexual material and large numbers of AI-generated abuse cases reflects evidence referenced in the ruling and by internet-watch groups, according to Courthouse News. The report does not independently verify those estimates or describe the safeguards currently used by Grok Imagine.