Trump DOJ Joins Musk Lawsuit Targeting Colorado AI Bias Law Before June Deadline
The Trump administration has joined Elon Musk’s xAI in a federal lawsuit targeting Colorado’s new artificial intelligence law, turning a single-company challenge into a national legal fight.
The move raises immediate stakes over who controls AI regulation, as federal officials push back on state-level rules they argue could reshape how technology is built.
According to Reuters, the Department of Justice intervened Friday in xAI’s case against Colorado’s Senate Bill 24-205, which requires developers to limit algorithmic discrimination in sectors like hiring, housing, and healthcare. The law is set to take effect June 30.
But the DOJ argues the law may violate the Constitution’s equal protection clause by requiring bias mitigation while permitting some diversity-based outcomes. xAI separately claims the law restricts free speech by dictating how AI systems are designed and what they can output.
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“Laws that require AI companies to infect their products with woke DEI ideology are illegal,” Assistant Attorney General Harmeet Dhillon said in a statement.
The intervention marks the first time the DOJ has entered a case challenging state AI regulation, signaling a broader effort by the Trump administration to establish a unified national framework instead of state-by-state policies.
That shift could reshape how companies build AI systems nationwide, especially as more states consider similar rules aimed at fairness and accountability.
The case now heads toward federal court review, with enforcement of Colorado’s law approaching and no public response yet from state officials.
The outcome could define how AI is regulated across the U.S.
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