Judge lets Minnesota's $500K AI image ban start

A federal judge let Minnesota’s AI nudification ban take effect with civil penalties of up to $500,000 per unlawful access, download, or use, denying xAI’s request for an immediate restraining order. Judge Donovan Frank’s July 31 order says xAI waited nearly three months after enactment and filed only three days before the August 1 start date; the preliminary-injunction fight continues with a hearing set for August 19, while the enacted statute states the penalty and effective date. For image-model operators, the ruling makes regional launch controls an immediate cost of distribution, extending the compliance pattern already visible in China’s rules for AI companions.