The European Union has initiated a formal investigation into xAI, the company behind the popular chatbot platform Grok, over allegations that it failed to adequately prevent the use of its tool to create and disseminate sexualized deepfakes. The probe was launched under the EU's Digital Services Act, which requires online platforms to take measures to mitigate risks related to child exploitation material.
The investigation centers on how xAI's Grok chatbot was used by users to generate non-consensual images of women and children, which were then posted on the X social network and the separate Grok app. The EU has expressed concerns that xAI's lax approach to content moderation and its design of AI products with fewer "guardrails" than competitors may have contributed to this problem.
"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," said Henna Virkkunen, the EU's tech chief. If found in breach, xAI could face fines worth up to 6 percent of its daily turnover.
The investigation comes amid growing scrutiny of social media platforms for their role in spreading hate speech and child exploitation material. Grok has been banned in Malaysia and Indonesia, while UK media regulator Ofcom is also conducting a formal investigation into the platform. xAI has responded by restricting the use of Grok to paying subscribers and implementing measures to limit its tool from generating certain types of images.
The probe marks another blow for Elon Musk's company, which was previously fined €120 million last year for breaching EU regulations on transparency, data access, and account verification.
The investigation centers on how xAI's Grok chatbot was used by users to generate non-consensual images of women and children, which were then posted on the X social network and the separate Grok app. The EU has expressed concerns that xAI's lax approach to content moderation and its design of AI products with fewer "guardrails" than competitors may have contributed to this problem.
"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," said Henna Virkkunen, the EU's tech chief. If found in breach, xAI could face fines worth up to 6 percent of its daily turnover.
The investigation comes amid growing scrutiny of social media platforms for their role in spreading hate speech and child exploitation material. Grok has been banned in Malaysia and Indonesia, while UK media regulator Ofcom is also conducting a formal investigation into the platform. xAI has responded by restricting the use of Grok to paying subscribers and implementing measures to limit its tool from generating certain types of images.
The probe marks another blow for Elon Musk's company, which was previously fined €120 million last year for breaching EU regulations on transparency, data access, and account verification.