A U.S. District Judge has denied xAI's request for a temporary restraining order that would have blocked Minnesota's ban on "nudify" apps, clearing the way for the law to take effect while the underlying lawsuit continues.
Judge Donovan Frank's ruling, reported by NBC News and TechCrunch, focused as much on the timing of xAI's filing as on the substance of the law. The artificial intelligence company, founded by Elon Musk and developer of the Grok chatbot, filed its request for a temporary restraining order "on July 29, 2026, nearly three months after the law was signed, and only three days before the law is set to take effect."
The Minnesota measure, signed around early May 2026, was set to take effect on August 1, 2026. It is the first ban of its kind in the United States, targeting apps that allow users to create non-consensual sexualized images.
A Delay That Spoke Volumes
Judge Frank's decision turned on the gap between the law's signing and xAI's emergency motion. The company waited nearly three months before acting, and then filed just three days before the effective date.
"Such a delay in bringing the action and the motion suggests that harm is not immediate," Judge Frank wrote.
The denial does not end xAI's lawsuit. It only allows the law to take effect while the case proceeds through the courts. The company will still have the opportunity to argue the merits of its challenge.
xAI's Arguments
In its filings, xAI argued the ban is "overinclusive" and that "there are far less restrictive alternatives that function to achieve the same ends." The company has not yet commented publicly on the judge's ruling.
The legal fight comes after a turbulent period for the company. Earlier in 2026, users of X, the social media platform owned by Musk, used xAI's Grok chatbot to flood the platform with non-consensual sexualized images. The incident led to investigations and bans.
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Both X and xAI are now part of SpaceX, according to the article.
Background of the Ban
Minnesota's law is the first in the nation to specifically target "nudify" apps, which use artificial intelligence to strip clothing from photos of real people without their consent. Lawmakers in the state moved quickly after the Grok incident drew national attention.
The ban's supporters have argued that such tools enable severe privacy violations and harassment. Opponents, including xAI, contend the law is too broad and could sweep in legitimate uses of AI image technology.
What Happens Next
With the temporary restraining order denied, the law is now in effect in Minnesota. The case will continue, and xAI will have the chance to press its claims that the statute is overinclusive.
Legal observers say the ruling could shape how other states approach similar legislation. The judge's emphasis on timing may also serve as a warning to companies that wait too long to challenge new laws.
The article was published on August 1, 2026, at 1:26 PM PDT. Image credit: Klaudia Radecka/NurPhoto / Getty Images.