Elon Musk's artificial intelligence venture xAI, now under the SpaceX umbrella, has filed a lawsuit in federal court challenging Minnesota's new legislation that would ban so-called 'nudify' apps—AI-powered tools that generate non-consensual intimate images. The Minnesota legislation specifically targets tools that use machine learning algorithms to digitally remove clothing from photos of real people without their consent, part of a broader wave of state-level attempts to address AI-enabled harassment, with at least 15 states considering similar measures this year according to legislative tracking data. xAI's legal team argues the ban oversteps constitutional boundaries, and while the full complaint details haven't been made public yet, challenges to content restriction laws typically center on First Amendment protections. The timing is notable as SpaceX absorbed xAI earlier this year in a restructuring that gave Musk's AI ambitions deeper pockets and closer ties to his aerospace empire. The legal challenge marks one of the first major confrontations between Big Tech and state-level AI content regulations, setting up a potential landmark case that could shape how lawmakers address AI-generated deepfakes nationwide.