Elon Musk’s AI firm, xAI, has sued the state of Colorado to block impending regulations on AI chatbots, including its own Grok. The lawsuit targets Colorado’s Senate Bill 24-205, which aims to prevent algorithmic discrimination in critical sectors. xAI argues the law unconstitutionally compels speech and contradicts its mission of truth-seeking, following a similar legal challenge against California last year.
xAI, the artificial intelligence company founded by Elon Musk, has filed a lawsuit seeking to block Colorado’s incoming AI regulations. The company is specifically challenging Colorado’s Senate Bill 24-205, which aims to protect users from algorithmic discrimination in employment, housing, and finance.
In a court filing, xAI argued that Colorado cannot alter its chatbot’s message to promote state views on fairness. The company stated the law promotes differential treatment to increase diversity, contradicting its goal for Grok to be “maximally truth seeking.”
This marks the second state xAI has sued over AI rules, having filed against California in December. The lawsuits follow past accusations of Grok making racist and antisemitic comments.
White House AI czar David Sacks has argued AI rules should be left to federal regulators. He stated a patchwork of 50 different state laws is difficult for innovators to comply with.
Sacks was appointed co-chair of the President’s Council of Advisors on Science and Technology to address this regulatory issue. The push for federal standards comes as states like Colorado prepare to enforce their AI laws starting June 30.
