Minnesota's first-in-the-nation ban on AI "nudify" applications is now in force. The law, which took effect on Saturday, makes it illegal to operate apps and websites that generate sexual images of people without their consent, with violators facing fines of up to $500,000 per offense.

Its path to enforcement was cleared days earlier when a federal judge denied a request by Elon Musk's xAI for a temporary restraining order that would have blocked the law. The judge ruled that xAI had not shown a strong enough case for an injunction, though the company's underlying court challenge can continue.

xAI — now owned by SpaceX — sued Minnesota Attorney General Keith Ellison in late July, arguing the law is overly broad and raises constitutional concerns. The ruling allows the statute to take effect as scheduled while the lawsuit proceeds. The company's related litigation against OpenAI and CEO Sam Altman, which began in California, also continues.

Minnesota's statute is among the most aggressive state responses to a surge in AI-generated non-consensual intimate imagery, which has grown into a global crisis as image-generation models have become cheap and accessible. "Nudify" apps, which strip clothing from photos of real people, have been linked to harassment, blackmail and abuse, especially targeting women and minors.

Advocates welcomed the ruling as a landmark. "This is exactly the kind of law that victims of image-based abuse have been demanding for years," child-safety and digital-rights groups said in a joint statement, adding that other states are expected to follow Minnesota's lead.

Tech and civil-liberties critics counter that the law's wording could sweep in legitimate uses and conflict with federal immunity rules for online platforms. With the injunction bid denied but the main case unresolved, the state begins enforcing the ban even as the legal battle over its scope plays out in court.