The United States Department of Justice intervened on Friday in a legal challenge filed by Elon Musk’s xAI against a Colorado law designed to regulate artificial intelligence. As reported by The Guardian, federal officials claim the state legislation violates constitutional equal protection guarantees by mandating diversity-focused discrimination.
Federal authorities argue that Senate Bill 24-205 infringes upon the 14th Amendment by forcing developers to implement specific safeguards while simultaneously permitting certain discriminatory practices. The intervention marks a significant escalation in the conflict between the federal administration and state-level regulatory efforts regarding high-risk technology systems.
“Laws that require AI companies to infect their products with woke DEI ideology are illegal,” said Harmeet Dhillon, the assistant attorney general for civil rights.

The legal filing by the Department of Justice aligns with a broader push for a unified national framework for AI governance. The administration seeks to prevent a patchwork of varying state laws that could complicate the development of technology in sectors like healthcare, finance, and employment.
The xAI corporation previously argued that the Colorado statute violates the First Amendment by forcing companies to adopt specific stances on public issues. The firm contends that the law’s requirements for risk mitigation and disclosure unfairly restrict how software developers design their core systems.
“Laws that require AI companies to infect their products with woke DEI ideology are illegal,” said Harmeet Dhillon, the assistant attorney general for civil rights.

Scheduled to take effect on June 30, the Colorado law targets systems used in critical decision-making processes such as education and housing. While the Colorado attorney general’s office has declined to comment on the federal intervention, the state previously defended the bill as a necessary measure for consumer protection and transparency.