DOJ Intervenes in xAI Lawsuit to Block Colorado's AI Discrimination Law[1][2][3]
xAI filed suit on April 9, 2026, in U.S. District Court for the District of Colorado to block enforcement of Colorado's SB24-205, a comprehensive AI anti-discrimination law scheduled to take effect June 30, 2026. The statute requires developers and deployers of high-risk AI systems—those used in hiring, lending, and admissions decisions—to conduct impact assessments, make disclosures, and implement risk mitigation measures to prevent algorithmic discrimination. Two weeks later, on April 24, the U.S. Department of Justice intervened with its own complaint, arguing the law violates the Equal Protection Clause by compelling demographic adjustments through disparate-impact liability while simultaneously authorizing discrimination through exemptions for diversity initiatives. The court granted DOJ's intervention and issued a stay suspending enforcement pending resolution.