A Minnesota law banning nudification technology has been paused by a federal appeals court that sided with tech billionaire Elon Musk’s artificial intelligence company in its request to temporarily block the statute.

The Eighth Circuit Court of Appeals on Friday granted a temporary ban on the law as requested by the company, xAI, in a decision that puts the law on hold while the tech company’s lawsuit proceeds.

The one-page ruling provided no explanation for the court’s reasoning.

The Minnesota Star Tribune contacted the office of state Attorney General Keith Ellison for comment.

Minnesota passed the firstof-its-kind law this year prohibiting nudification technology, which allows users to manipulate photographs of fully clothed people using artificial intelligence to make them appear nude or create deepfake pornographic videos or images. Minnesota’s law carries a $500,000 fine per violation for tech companies and allows victims to sue the owners for damages.

Days before the law took effect, lawyers for xAI filed a federal suit to halt it, calling it an overly broad ban that violates protected free speech.

The company asked a lower court to temporarily stop the legislation from being enforced while court proceedings continued. In early September, a judge denied xAI’s request and allowed the law to remain in effect.

Minnesota’s law passed nearly unanimously in the state Legislature amid concerns over AI-manipulated sexualized images continuing to flood the internet. Many states have laws surrounding deepfakes, but Minnesota’s law is unique for its stiff financial penalty and liability for tech companies.

Lawyers for xAI have argued that the company already has guardrails in place to prevent people from using its technology to create sexualized images of people without their consent, and Minnesota’s law offers no leeway for businesses if someone finds a way around the rules, “regardless of how many mitigations the provider has in place.” Lawyers for xAI have emphasized that they do not dispute the intent behind Minnesota’s law but characterized it as an infringement on free speech.

Minnesota DFL Sen. Erin Maye Quade, chief author of the law, sharply criticized the court’s decision in a statement.

“This ruling is another devastating reminder of how little the safety of women and children mean to men with money and power,” she said. “Minnesota is the only state that has cut off predators’ access to technology to commit AI-image sexual abuse — and the Eighth Circuit Court of Appeals just gave child predators their favorite tool back.”

sarah.nelson@startribune.com