California has launched a formal investigation into Elon Musk’s xAI following mounting allegations that its Grok model is generating sexually explicit deepfake images without consent. State Attorney General Rob Bonta said recent reports showing the spread of fabricated nude imagery including depictions of women and children were shocking and called on xAI to act immediately.
The probe comes as global scrutiny intensifies. UK Prime Minister Sir Keir Starmer has warned that X, which hosts Grok, could lose its ability to self-regulate. British watchdog Ofcom has separately opened its own investigation and could impose fines of up to 10% of global revenue if laws are found to be broken.
xAI argues that users, not the company, are responsible for illegal prompts, though legal experts question this defence. Cornell professor James Grimmelmann notes that Section 230 which protects platforms from liability does not apply when the AI itself generates harmful content. Musk denied knowledge of any underage explicit imagery and dismissed criticisms as politically motivated. Despite calls from US senators to remove X and Grok from app stores, both remain available.