Elon Musk's artificial intelligence company xAI has filed a lawsuit against Colorado seeking to block a new state law that imposes requirements on AI systems to prevent algorithmic discrimination, arguing the law violates its First Amendment free-speech protections. The lawsuit, filed in US district court in Colorado, challenges a comprehensive AI regulation that was the first of its kind passed by a state, according to xAI. The law, signed by Governor Jared Polis in 2024, was originally set to take effect in February but was delayed to June 30 after Polis expressed reservations and called for amendments, according to state records.
It requires developers and deployers of AI systems to take reasonable care to avoid algorithmic discrimination in critical areas such as education, employment, healthcare, housing, and financial services, according to the law's text. xAI, which makes the chatbot Grok, claims the law infringes on its First Amendment rights and would force the company to promote the state's ideological views on racial justice, according to the lawsuit. The company is seeking an injunction to block enforcement and a court declaration that the law is unconstitutional, according to court documents.
The lawsuit comes amid scrutiny of Grok, which has been accused of producing racist, sexist, and antisemitic content, according to media reports. xAI merged with SpaceX earlier this year, according to company announcements. The Colorado attorney general's office declined to comment on the lawsuit, and xAI did not return a request for comment.
The case raises questions about the constitutionality of state-level AI regulation and could set a precedent for similar laws in other states. It remains unclear how the court will rule or whether other parties will intervene.