New Delhi, July 29 -- Elon Musk's artificial intelligence company xAI, now owned by SpaceX, has filed a lawsuit against Minnesota Attorney General Keith Ellison, challenging a new state law that seeks to ban so-called "nudify" apps, CNBC reported.

The legislation, which takes effect on Saturday, targets websites and applications that enable users to create non-consensual sexually explicit AI-generated images. It imposes fines of $500,000 for every explicit deepfake created through such platforms.

Passed in April, the law was championed by Minnesota state Senator Erin Maye Quade after learning that a man had used social media photos of more than 80 women he knew to generate sexualized images and videos without their permission.

In their...