Elon Musk's xAI has filed a federal lawsuit challenging Colorado's first-in-the-nation AI anti-discrimination law, arguing it violates free speech protections. The Colorado AI Act, set to take effect in June, requires developers to prevent algorithmic discrimination and disclose risks to the state attorney-general.

The lawsuit claims the law forces AI companies to promote the state's ideological views on racial justice rather than pursuing objective truth. xAI's filing argues the legislation would embed Colorado's preferred perspectives into AI systems and prohibit developers from producing speech the state dislikes.

This legal battle highlights the growing tension between state-level AI regulation and industry pushback. The Trump administration has urged Congress to establish a national AI standard to prevent a patchwork of state regulations. Colorado Governor Jared Polis signed the bill with reservations and has called for amendments, while the state legislature postponed implementation from February to June to allow further negotiations.