Minnesota

xAI Blames a $500,000-Per-Image Penalty for Forcing Grok Changes

xAI is challenging a Minnesota statute that imposes a $500,000 penalty per image for violations related to 'nudification technology,' which takes effect August 1, 2026. The company argues this strict liability law forces it to restrict its Grok AI image-editing features, claiming it violates the Constitution. xAI prefers to rely on its terms of use and has begun suing users who allegedly misuse the tool, presenting these actions as evidence that it is already taking steps to prevent harmful outputs.