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The Justice Department told a federal judge that Minnesota's nudification ban sweeps too broadly, without joining the case.
The News
On August 18, 2026, the United States filed a Statement of Interest under 28 U.S.C. section 517 in X.AI LLC v. Ellison, siding substantively with xAI's constitutional attack on Minnesota's HF 1606 nudification ban while expressly declining to join the case as a party. The filing argues that HF 1606 reaches conduct federal law leaves alone, because it imposes strict liability with no scienter requirement and no notice-and-takedown safe harbour, and because it borrows an intimate part definition from a physical-contact criminal statute. Judge Donovan W. Frank denied xAI's preliminary-injunction motion on September 4, finding it had waited too long and had not shown irreparable harm. On October 2 the Eighth Circuit granted xAI an injunction pending appeal, in a one-line order that gives no reasons.
Chandni Melwani
Founder & Editor
Aug 23, 2026 · 4 MIN READ
Know More
- — The filing: Statement of Interest of the United States, Doc. 42, filed August 18, 2026, signed by Associate Attorney General Stanley E. Woodward, Jr. The United States is not a party and states that it reserves all rights.
- — The statute: HF 1606 was signed May 7, 2026 and took effect August 1, 2026. It bars a service from allowing a user to nudify an image or video, or from doing so on a user's behalf, with a civil penalty of up to $500,000 for each unlawful access, download or use. Minn. Stat. section 325E.91, subd. 5(a).
- — The definitional objection: HF 1606 takes intimate part from Minn. Stat. section 609.341, subd. 5, a criminal-sexual-conduct provision about physical contact, which reaches the inner thigh and the breast, male or female.
- — The earlier ruling: Judge Frank denied xAI's emergency restraining order on July 31 on timeliness, noting the company moved nearly three months after the law was signed and three days before it took effect. That order did not reach the merits.
- — Where it stands: Eighth Circuit injunction pending appeal granted October 2; the November 5 dismissal hearing was struck.
On August 18 the United States told a federal court that a Minnesota law goes too far — in a case the United States has not joined. The law took effect on August 1 and bans operating a nudification service: one that alters a photograph of a real, identifiable person to show a body part the original did not.
The vehicle is a statement of interest under 28 U.S.C. § 517, which lets the Attorney General send a Justice Department lawyer to address a court in a pending case without the government becoming a party. It is a lighter instrument than intervention, and the filing says so: the United States “reserves all rights,” and observes in a footnote that the Attorney General could intervene to vindicate federal supremacy. Signed by Associate Attorney General Stanley E. Woodward, Jr., it lands in X.AI LLC v. Ellison, where Elon Musk’s xAI is arguing that HF 1606 violates the First Amendment.
Read closely, the objection is narrower than the framing suggests, and more technical. The Justice Department’s objection is that Minnesota wrote strict liability where the comparable federal statutes require that an act be done knowingly, gave platforms no notice-and-removal window of the sort the TAKE IT DOWN Act provides before liability attaches, and pulled its definition of “intimate part” out of a criminal statute written about physical contact. That last borrowing is what produces the filing’s own illustration: HF 1606 “would apply to an artificially generated image of a shirtless man in a swimming pool,” where “federal law does not.” xAI’s reply brief makes the commercial version of the point, that the same edit revealing an inner thigh or a bare chest exposes the provider to a $500,000 penalty — a figure the statute sets per unlawful access, download or use.
What makes this more than a drafting quarrel is the authority the filing cites for why breadth matters. It quotes Executive Order 14365 for the proposition that it is “the policy of the United States to sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI” — one “national standard,” rather than “50 discordant state ones” — and argues HF 1606 “stretches far more broadly with its strict liability regime to risk paralyzing the AI industry and hampering United States leadership in AI.” That is the executive order’s preemption strategy being run through a district court instead of through Congress, and the test case is a child-protection statute the legislature passed nearly unanimously. The same filing cites a second order, the one that put a 30-day federal review in front of frontier model releases, for the federal interest it says the state law disturbs. Minnesota’s opposition brief leans on exactly that, citing Moody v. NetChoice for the cost a plaintiff accepts in bringing a facial challenge. xAI is separately a defendant in a California class action alleging Grok produced child sexual abuse material from real childhood photographs.
Update, October 8, 2026: Judge Frank denied the preliminary injunction on September 4, concluding that xAI had unreasonably delayed and had not shown irreparable harm, and refused an injunction pending appeal on September 9. The Eighth Circuit’s October 2 order is a single sentence: “Appellant’s motion for injunction pending appeal is granted.” At both parties’ request, the motion to dismiss waits until after the appeal, and its November 5 hearing was struck. The court amended the caption on October 8 to reflect that X.AI LLC is now known as SpaceXAI LLC.
For anyone building image tools with US users, the operative fact is the timetable rather than the constitutional argument: a strict-liability state exposure took effect on August 1, and the federal government’s view of it carries no legal weight until a judge adopts it. The compliance work that survives either outcome is the same work platforms are already doing for Amazon’s synthetic-performer tagging rules — knowing what an edit did to an image, and being able to show it.
Related
Frequently Asked Questions
Did the Justice Department join xAI's lawsuit?
No. A statement of interest under 28 U.S.C. section 517 lets the Attorney General send a Justice Department officer to attend to the interests of the United States in a pending case without becoming a party to it. The filing says the United States reserves all rights, and notes in a footnote that the Attorney General may intervene in a case to vindicate the supremacy of federal law. It did not do so here.
Has any court decided whether HF 1606 is constitutional?
No. Judge Frank denied the preliminary injunction on September 4 because xAI had unreasonably delayed and had not shown irreparable harm. He did not reach the merits, writing that the constitutional issues "deserve, and will receive, full consideration." The Eighth Circuit's October 2 order granting an injunction pending appeal gives no reasons. The State's motion to dismiss waits until after the appeal, and its November 5 hearing was struck.
What does the Justice Department say Minnesota got wrong?
Three things, all narrow. HF 1606 imposes strict liability where the federal statutes it compares against require that an act be done knowingly. It has no notice-and-removal process of the kind the TAKE IT DOWN Act gives platforms before civil liability attaches. And its definition of intimate part comes from a statute about physical contact, so it covers anatomy the federal definition does not. The filing's own example is an artificially generated image of a shirtless man in a swimming pool, which it says HF 1606 would reach and federal law would not.
Sources
- Statement of Interest of the United States of America, X.AI LLC v. Ellison, No. 0:26-cv-03425-DWF-DTS (D. Minn.), Doc. 42 (filed August 18, 2026)
- Memorandum of Law in Opposition to X.AI's Motion for a Preliminary Injunction, Doc. 38 (filed August 14, 2026) — the State's case for the ban
- X.AI Reply Brief, Doc. 39 (filed August 17, 2026) — the $500,000-per-image argument at p. 10
- Notice of Hearing on Defendant's Motion to Dismiss, Doc. 47 (filed August 19, 2026) — November 5, 2026 at 9:00 a.m. (hearing later struck, Doc. 53, September 1, 2026)
- Minnesota Session Laws 2026, Chapter 72 (HF 1606) — definitions, prohibited conduct and the $500,000 civil penalty
- Memorandum Opinion and Order denying xAI's motion for a preliminary injunction, Doc. 54 (filed September 4, 2026)
- SpaceXAI LLC v. Ellison, No. 26-2806 (8th Cir.), docket — order of October 2, 2026 granting the motion for injunction pending appeal
Chandni Melwani
Chandni Melwani is the founder and editor of New in AI, covering AI agents, M&A, and enterprise adoption. She holds a Master's in Management of Artificial Intelligence from Queen's University and brings a practitioner's perspective from her work in Data and AI leadership.
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