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Justice Department Joins xAI Lawsuit Challenging Colorado AI Law

The DOJ argues that the law may violate the Constitution by requiring AI systems to consider protected characteristics such as race or gender.

 

The Department of Justice (DOJ) filed a motion to join a lawsuit brought by xAI against Colorado’s Attorney General, challenging State Bill 24-205. The motion argues that the law violates the Equal Protection Clause of the Fourteenth Amendment.

The Colorado law mandates disclosure and risk-mitigation rules for developers of high-risk AI systems, with the goal of preventing discriminatory outcomes in areas such as employment, housing, and lending. 

The DOJ claims that complying would require AI developers to consider factors such as race and/or gender when building AI models, arguing that incorporating and evaluating people on these characteristics is unconstitutional.

The case was originally filed by xAI on April 9, 2026, in the U.S. District Court for the District of Colorado. 

The challenge comes amid a broader theater in which the White House is actively discouraging state legislation in favor of the administration’s AI regulatory plans.

This is the first time the Department of Justice has intervened in an AI lawsuit.

Clayton Rifkind

Clayton Rifkind is the Founder and Senior Editor of AI Risk Today. He also advises on business development for ESG Today, a leading source of ESG investment news and research for institutional investors and corporate leaders. He has 20+ years of experience in B2B technology, leading strategy and execution of go-to-market plans across software, enterprise platforms, and mobile applications. He founded two consultancies advising startups and Fortune 1000 companies, including Autodesk, Intel, and Microsoft. He began his career in the San Francisco advertising scene working with brands such as Hewlett-Packard, Intel, Microsoft, Symantec, and Wells Fargo. Clayton launched AI Risk Today in 2025 after two decades of watching enterprises adopt transformative technologies, and seeing how often risk, governance, and compliance considerations lagged behind. His reporting draws on primary sources including regulatory filings, court documents, and official announcements, with a focus on what AI developments mean for the executives accountable for managing them. Reach him at Reach him at [email protected] or on LinkedIn.

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