\u201cA company whose users request just ten images in violation of the statute would face exposure up to $5 million in civil penalties alone. A company with a thousand violative images could be fined up to $500 million. And a business whose users created a hundred thousand images covered by [the law] (not at all unlikely for a publicly available program with millions of users generating billions of images) could owe an eye-popping $50 billion dollars.\u201d<\/p>\n
Additionally, the law gives victims a right to sue xAI over any individual output, which increases xAI\u2019s financial risks.<\/p>\n
The penalties are so severe, xAI said in its lawsuit that it was finally preparing to update Grok to block harmful outputs after more than six months of backlash and probes pressuring the firm to tighten its safeguards.<\/p>\n
\u201cConfronted with $500,000-per-image strict liability and no safe harbor, xAI has no practical choice but to restrict Grok Imagine\u2019s image-editing features in various ways when the statute takes effect on August 1, 2026,\u201d xAI argued. \u201cProtected speech freely available before the law takes effect will thus be chilled.\u201d<\/p>\n
However, xAI would prefer to leave Grok unchanged and continue relying on its terms of use stipulating that users could be banned for using Grok to make CSAM or other kinds of non-consensual intimate images (NCII), its complaint said.<\/p>\n
\u201cBut for [the law] and its penalties, xAI would continue to offer the editing feature exactly as it does today,\u201d xAI said.<\/p>\n
Nudification law is unconstitutional, xAI says<\/p>\n
To defend Grok, Musk\u2019s firm is turning to the First Amendment, arguing that Minnesota\u2019s law is a \u201cclumsy attempt to prohibit \u2018nudification\u2019\u201d that \u201csweeps in a wide range of fully protected speech.\u201d That includes nude images generated with \u201cartistic, scientific, political, satirical, educational, medical, or religious value,\u201d xAI argued.<\/p>\n
Most egregiously, \u201cliability attaches even if the depicted persons consented\u2014or created the image themselves\u2014and even if the image is never shared,\u201d xAI emphasized in its complaint.<\/p>\n
Minnesota has less restrictive means to block harms from nudification, xAI argued, while claiming that the Take It Down Act already protected users from harms of distribution.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cA company whose users request just ten images in violation of the statute would face exposure up to…\n","protected":false},"author":2,"featured_media":550322,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,145],"class_list":["post-550321","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/550321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=550321"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/550321\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/550322"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=550321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=550321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=550321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}