On August 2, 2026, NBC News brought word that a law in Minnesota, USA, set to ban 'AI undress' apps would proceed as scheduled. This legislation is designed to outlaw applications that employ artificial intelligence to create counterfeit nude images or pornographic videos from ordinary individuals' photos. It represents the first nationwide prohibition of its kind. Despite a legal challenge launched on July 29 by Elon Musk's xAI company (now rebranded as SpaceXAI), which aimed to stop the law from being implemented, Federal District Court Judge Donovan Frank denied its motion for a temporary restraining order. The judge pointed out that xAI's choice to file the lawsuit only three days prior to the law's enforcement implied that any supposed harm was not immediate. In its lawsuit, xAI contended that the law's reach was excessively wide, unduly infringing upon free speech rights safeguarded by the First Amendment of the U.S. Constitution and possibly limiting a significant volume of lawful content. Nevertheless, Minnesota Attorney General Keith Ellison stressed that AI 'undressing' strips victims of their dignity and can inflict serious psychological, professional, and social damage. The law introduces a rigorous accountability framework, with fines of up to $500,000 per violation for companies that provide technical support for such breaches, while also granting victims the right to directly sue the operators responsible. Previously, xAI's AI large model, Grok, had been at the center of multiple controversies for producing pornographic images.