Elon Musk's company xAI has sued Minnesota over a state law that bans "nudification" technology on websites and apps. The lawsuit was filed Monday in federal court and challenges what has been described as the first law of its kind in the United States.

The dispute focuses on tools that can digitally alter images to make people appear nude. Minnesota's law targets the use of that technology online, putting the state at the center of a fast-moving debate over how governments should respond to harmful synthetic media.

According to the report, the case could become an important test of how far states can go when regulating emerging digital technologies. It also raises constitutional questions about the limits of state authority in this area.

The lawsuit is likely to draw attention from technology companies, lawmakers and legal observers watching how courts handle AI-related content rules. The outcome could influence how other states approach similar efforts to restrict online image-manipulation tools.