Looks like Colorado’s AI law SB24-205 is on pause for now, and so is xAI’s lawsuit challenging it.
On Friday, the parties jointly agreed to suspend all case deadlines while Colorado works through potential changes to the law. Enforcement is also on hold during this process.
A state working group has proposed amendments to SB 24-205, and the legislature now has time to consider those changes. Depending on what happens next, and whether revisions address the constitutional concerns raised, this case could resume later.
As we’ve repeatedly said, Colorado’s law has major First Amendment problems, including how the law defines "algorithmic discrimination.” In its current form, AI developers are at risk of punishment for outputs the state deems discriminatory, while carving out exceptions for outputs that “increase diversity or redress historical discrimination.”
Functionally, that means access to the knowledge that these tools provide is at risk of being filtered through approved state messaging.
The Department of Justice’s intervention today in xAI v. Colorado notes the serious First Amendment problems with SB 24-205.
As we’ve argued, the law pushes AI developers to engineer “approved” outputs — changing prompts, constraints, and models to align with Colorado’s preferred message, and favoring certain viewpoints over others.
This kind of viewpoint discrimination restricts the free exchange of information, cutting to the core of the First Amendment’s protection.
That’s why Colorado’s AI law poses a dangerous threat. We’re glad the Department of Justice sees it the same way: