Judge Blocks Enforcement of Colorado’s New AI Law

The law was slated to go into effect on June 30.
Published: 5/2/2026, 5:14:09 PM EDT
Judge Blocks Enforcement of Colorado’s New AI Law
The logos for Grok and xAI are shown on a smartphone, in this file photo. (Riccardo Milani/Hans Lucas/AFP via Getty Images)

A federal judge has temporarily blocked the State of Colorado from enforcing a first-of-its-kind artificial intelligence law.

Colorado is prohibited from taking enforcement actions on alleged violations of the law occurring up to 14 days after the court issues a ruling on the company xAI's motion for a preliminary injunction, judge Cyrus Y. Chung ruled on April 27.

The Department of Justice had said the state law, which was set to go into effect on June 30, would have required AI developers and deployers to “discriminate based on race, sex, & religion—all in the name of DEI.”

DEI is an acronym for "diversity, equity, and inclusion."

Brett Shumate, an assistant attorney general for the DOJ’s Civil Division, called the suspension a “huge win for the American people.”

“Colorado immediately caved and agreed not to enforce the law against ANY AI company,” Shumate wrote in a X post on May 1.

Gov. Jared Polis (D-Colo.) signed into law the Consumer Protections for Artificial Intelligence in May 2024 and issued a statement sharing his reservations about how it could impact Colorado.

In the statement, he urged the General Assembly to revise and delay implementing it until January 2027.

“I am concerned about the impact this law may have on an industry that is fueling critical technological advancements across our state for consumers and enterprises alike,” Polis wrote.

However, the legislation was not revised; instead, it was delayed until June 30, 2026, which prompted tech billionaire Elon Musk's company xAI, which created Grok, to sue the state on April 9.

The unedited legislation was months away from going into effect when xAI asked the court to block the law from being enforced.

The Justice Department added its name as a plaintiff alongside xAI on April 24, marking the first time the DOJ had stepped into a case that challenged AI on a state level.

Both alleged that Colorado’s law would have caused unconstitutional “algorithmic discrimination” and asked a court to block it from being enforced.

“Laws that require AI companies to infect their products with woke DEI ideology are illegal,” said Assistant Attorney General Harmeet K. Dhillon, who works under the Justice Department’s Civil Rights Division.

“The Justice Department will not stand on the sidelines while states such as Colorado coerce our nation’s technological innovators into producing harmful products that advance a radical, far-left worldview at odds with the Constitution.”

The Epoch Times has reached out to Polis and Colorado Attorney General Phil Weiser for comment.