Elon Musk xAI Grok deepfake investigation 2026: Legal Pressure Mounts Over AI Images
California AG Rob Bonta launches an investigation into Elon Musk's xAI over Grok's deepfake generation. Learn how this impacts the $20B startup and AI regulations in 2026.
A $20 billion AI powerhouse is now under the legal microscope. California Attorney General Rob Bonta announced an investigation into Elon Musk'sxAI after reports revealed its Grok chatbot facilitated the creation of nonconsensual explicit deepfake images.
The xAI Grok deepfake investigation and Global Backlash
According to the Attorney General's statement, xAI appears to be facilitating the large-scale production of intimate images used to harass women and girls. Research from the Internet Watch Foundation suggests that Grok even allowed users to generate explicit depictions of minors. This probe follows similar actions from governments in the UK, Ireland, and the European Commission, while nations like Malaysia and Indonesia have already suspended the service.
| Region | Action Taken | Status |
|---|---|---|
| California, USA | Official AG Investigation | Active |
| European Union | European Commission Probe | Active |
| Malaysia/Indonesia | Service Suspension | Implemented |
| US Senate | DEFIANCE Act (Civil Suits) | Passed Senate |
Musk Blames Bugs as $20 Billion Funding at Risk
Elon Musk responded on X, claiming he wasn't aware of naked underage images produced by Grok. He attributed the controversial output to "user requests" or potential system "bugs." Despite this defense, the legal scrutiny could rattle investors such as Nvidia and Fidelity, who recently participated in a $20 billion funding round for the startup.
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