Trump DOJ Backs Elon Musk’s xAI in Fight Over Colorado AI Bias Law

The U.S. Division of Justice moved Friday to intervene in xAI’s lawsuit in opposition to Colorado, escalating a authorized struggle over how states can regulate synthetic intelligence and whether or not corporations could be held answerable for “algorithmic discrimination.”

In a press launch, the DOJ stated Colorado’s legislation, SB24-205, violates the Equal Safety Clause of the Fourteenth Modification as a result of it requires AI corporations to forestall unintentional “disparate impression” based mostly on protected traits corresponding to race and intercourse whereas exempting sure makes use of meant to advance range or handle historic discrimination.

“Legal guidelines that require AI corporations to contaminate their merchandise with woke DEI ideology are unlawful,” Assistant Legal professional Normal Harmeet Ok. Dhillon stated in a press release. “The Justice Division won’t stand on the sidelines whereas states corresponding to Colorado coerce our nation’s technological innovators into producing dangerous merchandise that advance a radical, far-left worldview at odds with the Structure.”

Colorado handed SB24-205 in 2024, and after a delay, the legislation is ready to take impact on June 30. It requires corporations that construct or use high-risk AI programs in selections corresponding to hiring, pupil admissions, and mortgage lending to evaluate and cut back discrimination dangers, disclose how these programs work, and notify shoppers when AI performs a task in consequential selections.

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Earlier this month, Elon Musk’s xAI sued Colorado, arguing that the legislation forces AI programs to provide ideologically biased or inaccurate outcomes. The DOJ’s intervention aligns the federal authorities with Musk’s AI firm in difficult the legislation.

Cody Barela, a accomplice at Colorado-based legislation agency Armstrong Teasdale, stated the DOJ’s argument that Colorado’s legislation slows AI growth could also be stronger than its constitutional declare.

“I believe that specific argument will probably be much less prone to win, however I do assume they’ve a sound argument by way of the burdens that the Colorado coverage would place on these corporations,” Barela instructed Decrypt, including that courts could also be extra receptive to arguments that Colorado’s legislation emburdens AI startups and will gradual U.S. competitiveness.

“The burden on them, compared to the delay that it causes within the AI race, would possibly really be a greater argument, and possibly a successful argument based mostly on administration coverage—that they mainly don’t need any burdens limiting tech corporations within the AI race,” he stated.

The DOJ’s intervention comes as states transfer forward with their very own AI guidelines whereas the Trump administration pushes to restrict state-level regulation, and shift AI policymaking to Washington. Colorado was among the many first states to move a broad AI bias legislation. On the identical time, lawmakers in New York and California have proposed or superior measures focusing on dangers tied to generative AI instruments.

Whereas lawmakers on either side of the aisle, together with U.S. Representatives Don Beyer (D-VA), Sara Jacobs (D-CA), Mike Lawler (R-NY), and U.S. Senators. Gary Peters (D-MI) and Thom Tillis (R-NC), have pushed for safeguards in opposition to bias in AI, Justice Division officers referred to as Colorado’s legislation a menace to innovation and U.S. competitiveness.

If xAI and the DOJ succeed, then Barela stated the case may affect how different states method AI regulation.

“I believe there are states which are much more keen to keep away from inserting any restrictions on tech corporations, each to advertise themselves as tech‑pleasant and to convey extra corporations there,” he stated. “Others could sit again and await the federal authorities to give you a nationwide coverage, slightly than begin a piecemeal, state‑by‑state course of that’s tougher to adjust to.”