The legislative crackdown follows a chaotic period in January when Grok generated millions of sexually explicit deepfakes, including content depicting minors. While such a failure would typically prompt an immediate shutdown, the platform remained operational for days, with Musk boasting about the app’s global growth even as the controversy mounted. Global regulators, including those in the EU, the UK, India, and Malaysia, questioned the accountability of AI providers in the face of widespread nonconsensual imagery.
While federal intervention in the United States remained limited, state legislatures took initiative. Minnesota’s law specifically prohibits site owners from facilitating access to or the use of software capable of creating nonconsensual sexual imagery. xAI claims the breadth of this mandate forces them to preemptively restrict features to avoid legal liability, setting up a direct confrontation between the state’s regulatory efforts and the company’s interpretation of free speech protections.

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