The European Union has launched a formal investigation into Elon Musk's xAI following concerns that its Grok chatbot generated non-consensual sexualized images, including potential child sexual abuse material. Regulators are examining whether the company complied with the Digital Services Act in mitigating risks on the X platform. Fines could reach 6 percent of xAI's global annual turnover if violations are found.
On January 26, 2026, the European Commission announced a probe into xAI under the Digital Services Act (DSA), focusing on the deployment of Grok on the X social network. The investigation assesses whether xAI took adequate steps to prevent the spread of manipulated sexually explicit images, which have included content that may amount to child sexual abuse material (CSAM). These deepfakes, generated without consent, were shared on X and the Grok app, sparking public outcry.
EU tech chief Henna Virkkunen stated, “Non-consensual sexual deepfakes of women and children are a violent, unacceptable form of degradation.” She added, “With this investigation, we will determine whether X has met its legal obligations under the DSA, or whether it treated rights of European citizens—including those of women and children—as collateral damage of its service.” The Commission noted that risks from Grok's tools have materialized, exposing EU citizens to serious harm.
This follows a €120 million ($140 million) fine imposed on X in December 2025 for breaches related to transparency and data access. The EU is also expanding a 2023 investigation into X's recommendation algorithms and illicit content prevention tools. Internationally, the UK’s Ofcom has opened a similar probe, while Malaysia and Indonesia have banned Grok.
In response, xAI restricted Grok to paying subscribers and implemented technological measures to limit sexualized image generation. Elon Musk warned, “anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content.” However, a CBS News report on January 26 found Grok still capable of generating undressed images, despite claims of removal.
An X spokesperson told The New York Times, “We remain committed to making X a safe platform for everyone and continue to have zero tolerance for any forms of child sexual exploitation, nonconsensual nudity and unwanted sexual content.” An EU official expressed skepticism about the effectiveness of these measures, citing ongoing harm to individuals.
xAI, which acquired X last year, designs Grok with fewer content guardrails than rivals like OpenAI, aiming for a “maximally truth-seeking” model. The probe occurs amid tensions, with Musk previously calling the EU “the fourth Reich” after the prior fine, and criticism from the Trump administration over perceived targeting of US firms.
