Elon Musk's xAI is suing to fight an AI discrimination law—and the Trump administration is backing it
By Pavithra Mohan
Published on April 28, 2026.
The Trump administration is supporting a lawsuit against a Colorado law that was set to take effect in June, claiming it violates federal equal protection laws. The law, SB24-205, was designed to regulate AI use and address potential discrimination as AI-powered platforms become increasingly prevalent. However, Elon Musk's xAI, the company that owns X, formerly known as Twitter, and has now merged with SpaceX, has sued to block the law, arguing it is burdensome and unconstitutional. The Justice Department also objected to a carveout in the law that condoned the use of AI to increase diversity or redress historical discrimination, which they view as reverse discrimination in the interest of promoting diversity. This move aligns with the Trump administration's desire to drive AI innovation unfettered by regulation and its stance on the issue of DEI-related discrimination.
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