Appeals court bars Minnesota from enforcing its AI nudify ban against xAI for now
On 2 October 2026, the US Court of Appeals for the 8th Circuit granted xAI, now called SpaceXAI, an injunction pending appeal. It stops Minnesota's Attorney General from enforcing the state's ban on AI tools that nudify photos of real people against the company while its appeal goes on. The one-sentence order gives no reasons and protects only xAI. Minnesota says it will keep defending the law.
The short version
- 01The 8th Circuit barred Minnesota from enforcing its nudify ban against xAI while the appeal is decided.
- 02The law, in force since 1 August 2026, bars websites and apps from letting users nudify images of real people, with fines up to $500,000 per violation.
- 03The order gives no reasons, covers only xAI, and the appeal itself is still open.
At a glance
| Court | US Court of Appeals for the 8th Circuit |
|---|---|
| Case | SpaceXAI LLC v. Ellison, No. 26-2806 |
| Decided | 2 October 2026 |
| Order | Injunction pending appeal, for xAI only |
| Law | Minn. Stat. § 325E.91 (nudification ban) |
| In force | 1 August 2026 |
| Fines | Up to $500,000 per violation |
What did the appeals court decide?
The 8th Circuit's order, dated 2 October 2026, reads in full: "Appellant's motion for injunction pending appeal is granted."
xAI, which renamed itself SpaceXAI, had asked the court to bar Minnesota's Attorney General from enforcing the law against it. The order grants that request and gives no reasons. It does not cover other companies, and the appeal itself has not been decided.
What does Minnesota's nudify ban do?
The law, Minnesota Statutes section 325E.91, took effect on 1 August 2026. It bars anyone who owns or controls a website, app or software from letting users nudify an image or video of an identifiable person, or doing it for them. Nudify means altering or generating an image so it realistically shows intimate body parts that were not in the original.
Tools that depend on the user's own technical skill are exempt. Civil penalties can reach $500,000 per violation.
What happened before the appeal?
In the district court, Judge Donovan W. Frank refused to block the law. In a 4 September ruling he found that xAI had unreasonably delayed and had not shown irreparable harm, and said the balance tipped steeply in favour of the state. He did not decide the free speech question.
In its appeal, xAI calls the law an overbroad, content-based ban and says it has restricted its Grok Imagine tool in Minnesota since 1 August.
What does Minnesota say?
Reuters reports the Attorney General's office is disappointed and will defend the law.
Minnesota's nudification ban outlaws AI technology products from generating sexual images that harm and harass people in the vilest way possible.
John Stiles, spokesperson for the Minnesota Attorney General, to Reuters
Why does it matter?
Fake nude images made by AI can be used to harass real people. Minnesota's law goes after the tools that make them, and this case will test how far a state can go.
What's next?
The 8th Circuit will decide xAI's appeal. Until then, Minnesota cannot enforce the law against xAI, but the law still applies to everyone else.
Questions people ask
Is Minnesota's AI nudify ban struck down?
No. The appeals court only stopped the state from enforcing it against xAI while the appeal is decided. The law still applies to others.
Why did the court rule for xAI?
The order gives no reasons. It is a one-sentence order granting xAI's motion.
What does nudify mean in the law?
Altering or generating an image so it realistically shows intimate body parts of an identifiable person that were not in the original.
What are the penalties?
Civil penalties of up to $500,000 per violation.
Sources
- Primary8th Circuit order, SpaceXAI LLC v. Ellison, No. 26-2806 (2 Oct 2026)
- Primary8th Circuit docket, SpaceXAI LLC v. Ellison
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