Colorado must hold off enforcing a state law requiring tech companies to prevent discrimination by autonomous tools in certain employment decisions, which Elon Musk’s artificial intelligence company xAI is challenging, a federal district court said.
The state must not investigate any alleged violations of the law until after the court issues a ruling on xAI’s forthcoming motion for a preliminary injunction in this case, Magistrate Judge Cyrus Y. Chung of the US District Court for the District of Colorado said in a Monday order.
xAI, the US Justice Department, and Colorado Attorney General Phil Weiser (D) filed a joint motion on April 24 to halt proceedings in the case, pointing to the possibility that the law is replaced or amended during the current legislative session.
The order also says xAI shall submit a preliminary injunction motion or amended complaint, if necessary, within 28 days after a rulemaking implementing the law, or any legislation that might replace it.
xAI sued April 9, arguing that the law “severely burdens” the development of AI tools and violates the Constitution’s First Amendment by requiring developers to “embed the state’s preferred views into the very fabric of AI systems.”
The law forces AI developers to conform speech to “state-enforced orthodoxy,” the complaint said.
Wheeler Trigg O’Donnell LLP represents xAI.
The case is xAI v. Weiser, D. Colo., 1:26-cv-01515, 4/27/26.
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