U.S. Justice Department Backs xAI In Colorado AI Law Dispute

The U.S. Department of Justice (DOJ) has intervened in a lawsuit filed by xAI against a Colorado law regulating artificial intelligence systems. The case is being heard in a federal court in Colorado.

The department argued that the law breaches the equal protection clause under the Fourteenth Amendment to the United States Constitution by requiring firms to prevent unintended bias while permitting certain forms of differential treatment linked to diversity goals. The law, known as Senate Bill 24-205, introduces disclosure and risk controls for AI systems used in sectors such as hiring, housing, education, healthcare, and finance. xAI has also argued that the measure limits free expression under the First Amendment.

The move brings the federal government into a dispute with Colorado, as the administration seeks a single national framework for AI regulation instead of separate state-level rules.