Elon Musk's X Faces Global Probes Over Grok AI Deepfake Controversy 2026

While Elon Musk mocks the situation with laughing emojis, world regulators are tightening the noose around X. The platform's AI chatbot, Grok, is under fire after users began generating and sharing explicit deepfake images, including child sexual abuse material (CSAM). Authorities in Europe, India, and Malaysia have launched formal investigations into how these AI-generated images proliferated so rapidly across the social network.

Global Regulatory Response to X Grok Deepfake Investigation 2026

The European Commission has signaled it's taking the matter "very seriously." Spokesperson Thomas Regnier called the output of Grok's "spicy mode" illegal and appalling, stating such content has no place in Europe. Meanwhile, India's Ministry of Electronics and IT ordered X to conduct a comprehensive review of its procedures, setting a strict deadline of January 5, 2026. Malaysia has also summoned company representatives, urging platforms to align their AI features with national safety standards.

Legal Peril in the U.S. and X's Defense

In the United States, the National Center on Sexual Exploitation (NCOSE) is pushing the Department of Justice and the FTC to step in. Legal experts note that the Take It Down Act, enacted last year, could be applied to virtually created content if it depicts identifiable children. In response, X Safety announced it's taking action against illegal content by removing posts and suspending accounts. Musk himself warned that users prompting Grok for illegal content would face the same consequences as those uploading it.

Despite the backlash, the controversy has curiously boosted the platform's engagement. According to Apptopia, daily downloads for the Grok app surged 54% since January 2, while X saw a 25% jump. However, industry critics like Musubi AI CEO Tom Quisel argue that xAI failed to implement even basic safety layers, choosing viral growth over public safety.