DOJ Supports xAI in Battle Against Colorado’s AI Regulation Law

The U.S. Department of Justice has thrown its weight behind Elon Musk’s AI venture, xAI, in a lawsuit against Colorado concerning a law slated to start in June that aims to oversee AI technologies.

xAI filed the lawsuit against Colorado’s Attorney General, Phil Weiser, on Thursday, seeking to block the law that mandates new obligations for AI systems. These requirements aim to prevent “algorithmic discrimination” in areas like education, employment, healthcare, housing, and finance.

The company states that the law poses significant hurdles for AI development and infringes upon free speech rights guaranteed by the First Amendment.

“The law restricts AI developers from expressing viewpoints that the State of Colorado disapproves of, while forcing them to align their perspectives with state-sanctioned narratives on contentious issues,” the lawsuit asserts.

Additionally, xAI argues that the statute would compel them to modify their AI chatbot, Grok, available on the platform X, to align with a politically charged viewpoint rather than preserving its neutrality.

On Friday, the DOJ announced that its Civil Rights Division teamed up with the Civil Division to file a motion to join the case.

Assistant Attorney General for Civil Rights, Harmeet Dhillon, mentioned in a social media video that the Colorado law mandates compliance with its “crazy, woke, DEI goals,” a nod to the prevalent Diversity, Equity, and Inclusion policies embraced by various liberal organizations.

“Such practices are unlawful under the 14th Amendment. It’s unacceptable to factor in race, gender, or sex to force businesses to modify their products according to the state’s standards,” she stated. “Moreover, the law even permits discrimination in algorithms if justified by addressing past wrongs, which contradicts recent Supreme Court rulings.”

“Interestingly, even Colorado’s governor expressed concerns about how this law might push tech innovators away from the state due to the heavy regulations,” she added. “And notably, President Trump has emphasized that AI is vital for national competitiveness and security, suggesting we shouldn’t have a confusing patchwork of regulations.”

Governor Jared Polis signed the bill into law back in 2024 but raised concerns regarding its potential to deter tech developers within Colorado.

Shortly after the motion was filed, the presiding judge allowed the DOJ to intervene, officially making the U.S. a party in the case.

According to Dhillon, this is a historic instance where the DOJ has contested a state law.

As the legal proceedings develop, the case emphasizes ongoing tensions between state regulations and emerging technologies in a fast-evolving landscape.