Elon Musk’s Fight With Colorado Over AI Law Hits Pause as State Considers Revisions

Colorado’s authorized battle with Elon Musk’s synthetic intelligence firm xAI is on pause for now.

In a joint filing on Friday, xAI and Colorado Legal professional Basic Phil Weiser requested a federal courtroom to cancel the June 16 scheduling convention and droop all case deadlines in xAI’s lawsuit difficult Senate Invoice 24-205, the state’s legislation geared toward stopping “algorithmic discrimination” in high-risk AI techniques.

The submitting additionally quickly halts enforcement of SB24-205, or any alternative legislation handed this legislative session. On the similar time, Colorado lawmakers contemplate revisions, and the courtroom weighs xAI’s anticipated movement for a preliminary injunction.

Earlier this month, xAI sued Colorado looking for to dam the state’s legislation earlier than it takes impact. The corporate argues that SB24-205 would drive builders to change how AI techniques function and limit how fashions generate responses.

“SB24-205 is decidedly not an anti-discrimination legislation,” xAI’s attorneys wrote within the unique grievance. “It’s as an alternative an effort to embed the State’s most popular views into the very cloth of AI techniques.”

The lawsuit argues the SB24-205 violates the First Modification by forcing xAI’s chatbot, Grok, to reply sure questions in ways in which match Colorado’s views on variety and equity. It additionally argues that the legislation is simply too unclear to implement pretty, tries to control habits exterior Colorado, and treats some AI techniques extra favorably than others primarily based on the sorts of solutions they produce.

The joint submitting says a Colorado AI coverage group shaped by Gov. Jared Polis launched a draft invoice on March 17 to repeal and exchange SB24-205. The lawyer basic mentioned his workplace is not going to implement the legislation or challenge guidelines till the legislative session and rulemaking course of are full.

Underneath the settlement, the lawyer basic mentioned he is not going to launch enforcement actions or investigations towards xAI for alleged violations till 14 days after the courtroom guidelines on xAI’s anticipated injunction request.

xAI agreed to file its movement for a preliminary injunction inside 28 days after closing adoption of guidelines implementing the legislation or any alternative measure.

The authorized battle escalated final week when the U.S. Division of Justice moved to intervene in assist of xAI.

The case is a part of a broader battle over who ought to regulate synthetic intelligence in the US, as states together with Colorado, New York, and California advance their very own guidelines whereas the Trump administration pushes for a federal method.