United States of America: X.AI filed complaint against Colorado Attorney General challenging SB24-205

On 9 April 2026, X.AI ("xAI"), a Nevada-incorporated, California-headquartered developer of the large language model Grok, filed a complaint for declaratory and injunctive relief in the United States District Court for the District of Colorado against the Colorado Attorney General in his official capacity (Case No. 1:26-cv-01515), seeking a declaration that Senate Bill 24-205 ("SB24-205") is unconstitutional, a permanent injunction against its enforcement, and costs and attorney's fees under 42 U.S.C. § 1988. xAI qualifies as a "developer" of a "high-risk artificial intelligence system" under SB24-205, with users and enterprise customers in Colorado. The complaint alleges six grounds: first, that SB24-205 violates the First Amendment by compelling xAI to alter Grok's outputs to conform to Colorado's views on algorithmic discrimination through retraining, re-weighting of datasets, or hard-coded guardrails; second, that its mandatory disclosure provisions separately violate the First Amendment by compelling non-commercial, contested speech; third, that SB24-205 violates the Dormant Commerce Clause by regulating out-of-state transactions involving any Colorado resident regardless of location; fourth, that it imposes an undue burden on interstate commerce disproportionate to any local benefit under Pike v Bruce Church, Inc., given the absence of legislative findings and the existence of federal and state anti-discrimination statutes covering the same subject matter; fifth, that it is unconstitutionally vague under the Due Process Clause of the Fourteenth Amendment for failing to define terms including "algorithmic discrimination," "historical discrimination," and "substantial factor"; and sixth, that it violates the Equal Protection Clause by exempting AI uses that expand applicant pools to increase diversity or redress historical discrimination without a compelling governmental justification. SB24-205 is scheduled to take effect on 30 June 2026.