xAI Sues to Enjoin Colorado’s AI Act Before June 30 Effective Date, Joe Cahill
xAI Sues to Enjoin Colorado’s AI Act Before June 30 Effective Date, Joe Cahill
Publish Date: 2026-04-21 17:55:00
Source Domain: ourtake.bakerbotts.com
On April 9, 2026, X.AI LLC (“xAI”) filed a complaint for declaratory and injunctive relief in the U.S. District Court for the District of Colorado (X.AI LLC v. Weiser, No. 1:26-cv-01515) against Colorado Attorney General Philip J. Weiser, in his official capacity, seeking to enjoin enforcement of Colorado Senate Bill 24-205 — the act “concerning consumer protections in interactions with artificial intelligence systems” — before its scheduled June 30, 2026 effective date. SB 24-205, signed by Governor Jared Polis on May 17, 2024, requires developers and deployers of “high-risk” artificial intelligence systems to use reasonable care to protect consumers from “algorithmic discrimination” and imposes related disclosure, documentation, and impact-assessment obligations in connection with “consequential decisions” affecting education, employment, financial or lending services, essential government services, health-care services, housing, insurance, and legal services. Enforcement authority is vested exclusively in the Colorado Attorney General; violations are enforced under the Colorado Consumer Protection Act, with civil penalties of up to $20,000 per violation. The original February 1, 2026 effective date was deferred to June 30, 2026 following Colorado’s August 2025 special legislative session, and a working group convened by Governor Polis published a proposed amendment to the law on March 17, 2026 that has not yet been introduced as legislation. For coverage of the filing, see The Colorado Sun.
The complaint asserts claims under four constitutional theories. First, xAI alleges that SB 24-205 violates the First Amendment by compelling it, as a “developer,” to alter Grok’s training, fine-tuning, system prompts, and outputs to conform to Colorado’s preferred positions on contested subjects, and by separately compelling content- and viewpoint-based disclosures regarding bias-mitigation practices — invoking the Supreme Court’s…
