Senate Bill 205, passed in 2024, is one of the nation’s first attempts to regulate ‘high-risk’ AI systems and protect consumers from ‘algorithmic discrimination’ — or disparate treatment or impacts on protected classes under Colorado law.

In the complaint, which was filed in federal court in Denver, Musk’s lawyers contend that the law is ‘unconstitutionally vague’ and ‘invites arbitrary enforcement’ because it fails to define some key terms. They also contend that Colorado’s law would cause Musk’s AI chatbot, Grok, to ‘abandon its disinterested pursuit of truth and instead promote the State’s ideological views on various matters, racial justice in particular,’ which they say violates the First Amendment.

‘Unless the implementation and enforcement of SB24-205 is enjoined, it will violate xAI’s constitutional rights and cause irreparable constitutional harm, impose enormous burdens on xAI and the AI industry, and substitute Colorado’s political preferences for the national economic and security imperative of American AI dominance,’ the complaint reads in part…

…State Rep. Briana Titone, D-Arvada, one of Senate Bill 205’s lead sponsors, told The Sun that Musk’s lawsuit seems like a ‘fishing expedition’ that misinterprets the core of the law.

‘This is where the disconnect is. SB 205 is about consequential decisions, not about freedom of speech,’ Titone said. ‘It’s completely detached from it. And they’re trying to use this argument for a law that has nothing to do with what he’s saying. We’re not restricting speech. Our bill does not say that Grok still can’t be a dick.’

The lawsuit was filed at a time when the Trump administration looks to preempt state regulation of AI models through executive fiat.