Federal appeals court pauses Minnesota's AI "nudification" ban

Minnesota’s first law banning AI-created “nudification” images has been paused after the U.S. Court of Appeals for the 8th Circuit granted an injunction requested by Elon Musk’s xAI. The court issued a brief, one-sentence order holding enforcement while xAI’s appeal proceeds. The decision overturns an earlier September ruling that allowed the statute to remain in force during litigation. The law, signed by Gov. Tim Walz in May, would allow civil penalties up to $500,000 for companies and damages for victims. xAI sued three days before the Aug. 1 effective date, arguing it violates the First Amendment.