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Elon Musk’s company faces fines of up to 6 percent of its daily turnover.
Credit: Getty Images | VCG
The EU has launched a formal investigation into Elon Musk’s xAI following a public outcry over how its Grok chatbot spread sexualized images of women and children.
The billionaire entrepreneur has come under scrutiny from regulators around the world this month after people began using Grok to generate deepfakes of people without consent. The images were posted on the X social network as well as the separate Grok app, both of which are run by xAI.
The probe, announced on Monday under the EU’s Digital Services Act, will assess if xAI tried to mitigate the risks of deploying Grok’s tools on X and the proliferation of content that “may amount to child sexual abuse material.”
“Non-consensual sexual deepfakes of women and children are a violent, unacceptable form of degradation,” the EU’s tech chief, Henna Virkkunen, said.
“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.”
If the company is found to be in breach of the rules, the bloc can impose fines worth up to 6 percent of the worldwide annual turnover. An EU official said there will be no interim measures during the investigation.
The European probe comes after UK media regulator Ofcom opened a formal investigation into Grok, while Malaysia and Indonesia have banned the chatbot altogether.
Following the backlash, xAI restricted the use of Grok to paying subscribers and said it has “implemented technological measures” to limit Grok from generating certain sexualized images.
Musk has also said “anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content.”
An EU official said that “with the harm that is exposed to individuals that are subject to these images, we have not been convinced so far by what mitigating measures the platform has taken to have that under control.”
The company, which acquired Musk’s social media site X last year, has designed its AI products to have fewer content “guardrails” than competitors such as OpenAI and Google. Musk called its Grok model “maximally truth-seeking.”
The commission fined X €120 million in December last year for breaching its regulations for transparency, providing insufficient access to data and the deceptive design of its blue ticks for verified accounts.
The fine was criticized by Musk and the US government, with the Trump administration claiming the EU was unfairly targeting American groups and infringing freedom of speech principles championed by the Maga movement.
X did not immediately reply to a request for comment.
© 2026 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.
Credit: Getty Images | VCG
The EU has launched a formal investigation into Elon Musk’s xAI following a public outcry over how its Grok chatbot spread sexualized images of women and children.
The billionaire entrepreneur has come under scrutiny from regulators around the world this month after people began using Grok to generate deepfakes of people without consent. The images were posted on the X social network as well as the separate Grok app, both of which are run by xAI.
The probe, announced on Monday under the EU’s Digital Services Act, will assess if xAI tried to mitigate the risks of deploying Grok’s tools on X and the proliferation of content that “may amount to child sexual abuse material.”
“Non-consensual sexual deepfakes of women and children are a violent, unacceptable form of degradation,” the EU’s tech chief, Henna Virkkunen, said.
“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.”
If the company is found to be in breach of the rules, the bloc can impose fines worth up to 6 percent of the worldwide annual turnover. An EU official said there will be no interim measures during the investigation.
The European probe comes after UK media regulator Ofcom opened a formal investigation into Grok, while Malaysia and Indonesia have banned the chatbot altogether.
Following the backlash, xAI restricted the use of Grok to paying subscribers and said it has “implemented technological measures” to limit Grok from generating certain sexualized images.
Musk has also said “anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content.”
An EU official said that “with the harm that is exposed to individuals that are subject to these images, we have not been convinced so far by what mitigating measures the platform has taken to have that under control.”
The company, which acquired Musk’s social media site X last year, has designed its AI products to have fewer content “guardrails” than competitors such as OpenAI and Google. Musk called its Grok model “maximally truth-seeking.”
The commission fined X €120 million in December last year for breaching its regulations for transparency, providing insufficient access to data and the deceptive design of its blue ticks for verified accounts.
The fine was criticized by Musk and the US government, with the Trump administration claiming the EU was unfairly targeting American groups and infringing freedom of speech principles championed by the Maga movement.
X did not immediately reply to a request for comment.
© 2026 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.
