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Elon Musk’s Struggle With Colorado Over AI Legislation Hits Pause as State Considers Revisions

April 28, 2026
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Elon Musk’s Struggle With Colorado Over AI Legislation Hits Pause as State Considers Revisions
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In short

xAI and Colorado collectively moved to pause the lawsuit over SB24-205.
Enforcement of Colorado’s AI legislation is on maintain whereas lawmakers contemplate amendments.
The case might resume if revisions fail to handle xAI’s constitutional considerations.

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

In a joint submitting on Friday, xAI and Colorado Lawyer Common Phil Weiser requested a federal court docket 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 programs.

The submitting additionally quickly halts enforcement of SB24-205, or any alternative legislation handed this legislative session. On the identical time, Colorado lawmakers contemplate revisions, and the court docket 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 pressure builders to change how AI programs function and limit how fashions generate responses.

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



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 range and equity. It additionally argues that the legislation is simply too unclear to implement pretty, tries to control conduct outdoors Colorado, and treats some AI programs extra favorably than others based mostly 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 stated his workplace won’t implement the legislation or subject guidelines till the legislative session and rulemaking course of are full.

Underneath the settlement, the lawyer basic stated he won’t launch enforcement actions or investigations in opposition to xAI for alleged violations till 14 days after the court docket guidelines on xAI’s anticipated injunction request.

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

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

The case is a part of a broader struggle 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 strategy.

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