Colorado AI Act enforcement suspended amid X.AI lawsuit and DOJ intervention

May 18, 2026
Marc B. Collier Helen Christakos Ethan Glenn Remi Gambino Shushan Gabrielyan
Marc B. Collier Helen Christakos Ethan Glenn Remi Gambino Shushan Gabrielyan
Posted in Artificial intelligence Regulation Financial institutions Life sciences and healthcare Technology

Colorado's landmark artificial intelligence (AI) law is officially on ice, and the legal fight behind that development is shaping the national conversation on AI regulation.

X.AI, the company behind Grok, sued Colorado's Attorney General to block enforcement of the AI Act before it could take effect. The US Department of Justice then intervened in the lawsuit to oppose the law—the first time the DOJ has inserted itself into an ongoing challenge to a state AI statute. Days later, the Parties agreed to suspend enforcement of the AI Act. Our team analyzes the law, X.AI's claims, DOJ's intervention, what the possible next steps for Colorado’s AI Act are, and what companies should be thinking about right now.

Read the full article,“X.AI sues, DOJ intervenes, enforcement of Colorado’s AI Act suspended.”