Appeals court bars Minnesota AG from using AI nudification law on xAI

The U.S. Court of Appeals for the Eighth Circuit on Friday granted xAI an injunction pending appeal that blocks Minnesota’s attorney general from enforcing the state’s AI “nudification” statute against the company while its First Amendment case continues. The Oct. 2 order is one sentence. It does not say the law is unconstitutional. It does not name the judges who acted.

The order, verbatim

Under the caption SpaceXAI LLC v. Keith M. Ellison, No. 26-2806, the court wrote: “Appellant’s motion for injunction pending appeal is granted.”

The PDF is dated Oct. 2, 2026. It says the order was “Entered at the Direction of the Court” and is signed for the clerk by Susan E. Bindler. No panel is listed on the face of the order.

Who sought the injunction, and what they asked

xAI — the company behind Grok, captioned in the appeal as SpaceXAI LLC after an Aug. 6, 2026, name change that its emergency motion says left the same legal entity — filed the motion on Sept. 11. Counsel asked the Eighth Circuit to “enter an injunction pending appeal barring the Attorney General from enforcing § 325E.91 against SpaceXAI.”

Friday’s order grants that motion. It does not spell out extra terms. The motion sought relief only against the attorney general, not the private lawsuits the statute lets a depicted person bring.

The Minnesota rule in English

Minn. Stat. § 325E.91, effective Aug. 1, 2026, makes it unlawful for a person who owns or controls a website, app or other service to let a user “nudify” an image or video of an identifiable person, or to do that on a user’s behalf, according to a Minnesota House summary. Minnesota’s House summary puts the civil penalty at up to $500,000 for each unlawful access, download or use. That dollar figure is in the statute materials, not in the Oct. 2 order.

xAI sued Keith Ellison in his official capacity as Minnesota attorney general, arguing the law is an overbroad, content-based speech ban. A federal district judge in Minnesota had denied a preliminary injunction and later denied an injunction pending appeal. The company then asked the Eighth Circuit.

Who it binds

While the appeal is pending, the attorney general is enjoined from enforcing § 325E.91 against xAI — that is the relief the granted motion sought. Other providers aren’t parties to the injunction.

Who it exempts, and what it does not decide

• Constitutionality: Unresolved. The order has no merits holding.
• Other companies: Not named in the granted motion.
• Private civil suits: Not covered. The motion sought relief only against the attorney general’s enforcement, and the one-line order does not discuss private damages actions.
• Other deepfake or nonconsensual-image statutes: Not before this court in the order.

What it means for parents, schools and platforms

• Parents and schools: The statute was aimed at AI tools that take a real person’s picture and generate a sexualized fake. The injunction means Minnesota’s AG cannot, for now, use this statute against xAI while the appeal runs. The order does not cover other apps or other laws.
• Platforms and founders: xAI’s win is party-specific interim relief, not a facial wipe of the statute.
• How long it lasts: The injunction runs while the appeal is pending. The Eighth Circuit has not ruled on the merits.

On the record

A spokesperson for Ellison’s office told CBS Minnesota / WCCO on Sunday: “We are disappointed in the Eighth Circuit’s decision and respectfully but strongly disagree with it.” The office said it “will continue to vigorously defend the law as the appeal proceeds.” xAI had not posted a public statement on the order on x.ai as of 4:15 a.m. CT Monday.

What’s next

• The appeal continues on the merits; the Eighth Circuit has not set out a full briefing calendar in the Oct. 2 order.
• Minnesota’s next filing on the merits once the briefing clock starts.
• Whether other states’ similar bills track this injunction or wait for a merits opinion.

— Simone Adler