MINNEAPOLIS, MINN. — Artificial intelligence company xAI LLC has filed a lawsuit in federal court against Minnesota Attorney General Keith Ellison, challenging a new state law designed to curb AI-generated “nudification.” Strict Liability and Heavy PenaltiesUnder HF 1606, AI service providers face civil penalties of up to $500,000 per violation brought by the Minnesota Attorney General’s office, along with a private cause of action allowing depicted individuals to seek treble and punitive damages. xAI contends that the law creates a strict-liability framework with no requirement for intent, knowledge, or bad faith on the part of the platform provider. Rather than adopting narrower definitions focused specifically on exposed genitals or sexual deepfakes, Minnesota borrowed language from its criminal sexual-contact statute. Impact on Grok Imagine UsersxAI operates Grok Imagine, an image- and video-generation tool integrated into its Grok AI product suite.