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US Justice Department Intervenes in xAI Challenge to Colorado Tech Law

The federal government says the rules force AI developers to consider race, sex and religion to offset disparate impacts, citing a 2024 statute.

  • On Friday, the U.S. Justice Department intervened in a lawsuit by Elon Musk's xAI challenging Colorado's Senate Bill 24-205, which aims to regulate artificial intelligence systems.
  • Colorado's pending statute imposes risk-mitigation requirements on "high-risk" AI systems effective June 30; the Justice Department alleges the rules unconstitutionally "attempt to force discriminatory ideology on the AI industry."
  • The DOJ argues the law violates the Equal Protection Clause of the Fourteenth Amendment by requiring companies to guard against "disparate impacts" while permitting exceptions for diversity.
  • Assistant Attorney General Brett Shumate warned that laws forcing AI models to promote ideological bias "threaten national and economic security," while Colorado Attorney General Phil Weiser's office declined to comment.
  • This federal intervention escalates the conflict between the Trump administration and Colorado over state-level AI regulation, as the administration seeks a uniform national framework to replace fragmented state plans.
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Legal Reader broke the news on Friday, April 24, 2026.
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