[xAI Sues Minnesota, Challenges 'Nudification' AI Application Ban] Deep Tide TechFlow reports that on July 29, according to CNBC, xAI (now integrated into SpaceX), a company under Elon Musk, filed a lawsuit in federal court in Minnesota this Monday, challenging a state law set to take effect this Saturday. The law prohibits the generation of AI sexualized images ('nudification' applications) without the consent of the individuals involved, with violators facing fines of $500,000 per instance. xAI's legal team argues that the law 'imposes overly broad content restrictions on freedom of speech and visual expression tools,' violating the First Amendment of the U.S. Constitution. They also pointed out that if users were to generate 100,000 illegal images, companies could face astronomical fines of up to $50 billion. Notably, xAI is currently facing a separate class-action lawsuit accusing its Grok AI of being used to generate child sexual abuse material (CSAM).