Elon Musk’s xAI is suing Colorado over new artificial intelligence rules

Elon Musk’s xAI is suing Colorado over new artificial intelligence rules

By Dara Kerr
Publication Date: 2026-04-10 00:52:00

Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit against the state of Colorado over a new AI law set to take effect in June.

The lawsuit seeks to stop the state from enforcing the law, which would impose new requirements on AI systems to protect citizens from “algorithmic discrimination” in areas such as education, employment, healthcare, housing and financial services.

Colorado was the first state to pass a comprehensive law regulating AI.

The company claims the law violates the First Amendment’s free speech protections and would force xAI to “represent the state’s ideological views on various issues, particularly racial justice,” according to the Financial Times, which first reported the lawsuit. “Its provisions prohibit developers of AI systems from producing speech that the state of Colorado does not like.”

The lawsuit, filed in U.S. District Court in Colorado, comes at a time of intense regulatory battles at the state and federal levels…