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xAI

Elon Musk is merging SpaceX and xAI to build data centers in space — or so he says

SpaceX is profitable, while xAI is burning about $1 billion a month. Is this another case of Musk bailing out himself?

Andrew J. Hawkins
Dominic Preston
Dominic Preston
That old trick.

I used to compare Elon Musk to an old boss of mine who would spin up a company division every time he found a new hobby, but this might be just as apt:

ElectricOrchestra613:

Elon Musk’s constant new ventures and subsequent mergers just feels like the corporate equivalent of creating a new email every time you want to sign up for a free trial.

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Jess Weatherbed
Jess Weatherbed
X safety teams ‘repeatedly warned management’ about undressing tools.

While X has long allowed NSFW images, The Washington Post reports that the platform’s content moderation filters couldn’t handle the estimated millions of sexualized deepfakes of real women and children being generated by Grok.

“For instance, child sexual abuse material was typically rooted out by matching it against a database of known illegal images. But an AI edited image wouldn’t automatically trigger these warnings.”

Andrew J. Hawkins
Andrew J. Hawkins
Elon Musk invests $2 billion in Elon Musk.

In its earnings report today, Tesla disclosed a $2 billion investment in xAI “as part of their recent publicly-disclosed financing round.” Bloomberg reported earlier this year that xAI, which also owns X.com and the Grok AI chatbot, burned about $7.8 billion in the first nine months of 2025. Tesla claims that the investment in xAI is “intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale.”

Why nobody’s stopping Grok
Play

How Elon Musk and xAI are putting a nail in the coffin of content moderation.

Nilay Patel
Robert Hart
Robert Hart
In nine days, Grok shared 1.8 million sexualized images of women on X.

That’s a conservative estimate of the scale of Musk’s deepfake machine from The New York Times. The Center for Countering Digital Hate’s figure is worse: 3 million, 23,000 depicting children.

The undressings tailed off once X limited features to paying subscribers on January 8th, though didn’t completely stop.

Under Musk, the Grok disaster was inevitable

The problems were baked in.

Hayden Field
Jay Peters
Jay Peters
California’s attorney general sent xAI a cease and desist letter over Grok’s nonconsensual AI deepfakes.

“The avalanche of reports detailing this material — at times depicting women and children engaged in sexual activity — is shocking and, as my office has determined, potentially illegal,” Attorney General Rob Bonta says. The state has also opened an investigation into xAI.

Attorney General Bonta Sends Cease and Desist Letter to xAI, Demands It Halt Illegal Actions Immediately

[State of California - Department of Justice - Office of the Attorney General]

Dominic Preston
Dominic Preston
Let’s not mince words.

The mother of one of Elon Musk’s children has sued his company xAI over Grok deepfakes of her, alleging it’s a “public nuisance” — a legal term that doesn’t always seem to do its targets justice.

spypol17:

Saying Elon is a “public nuisance” is a very nice way to put it

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Elizabeth Lopatto
Elizabeth Lopatto
Bluesky advertises a solution to X’s Grok undressing people.

The solution is using Bluesky, of course. Naturally, a user with a blue check next to their name told Grok to put a bikini on the butterfly and the AI did — which seems like an even stronger advertisement for Bluesky than the one Bluesky itself posted.

Elissa Welle
Elissa Welle
All’s quiet on the xAI investor front.

The Atlantic reached out to a number of top investors in Elon Musk’s AI company in response to the flood of nonconsensual deepfakes generated by Grok on X. They said nothing. Other companies that provide infrastructure to xAI — Nvidia, Google, Apple, Oracle, and AMD — also kept quiet.

While Grok has infuriated policymakers around the world, the list of investigations has grown slowly, with the latest addition being California AG Rob Bonta. Meanwhile, Grok continues to undress women, despite reports claiming otherwise.

Jess Weatherbed
Jess Weatherbed
The UK is formally investigating X over Grok deepfakes.

Ofcom says the probe will establish whether X has failed to comply with Online Safety Act obligations, over concerns its Grok AI chatbot is generating sexualized deepfakes of adults and minors. The investigation is “a matter of the highest priority,” and may result in hefty fines or even X being banned in the UK.

Terrence O'Brien
Terrence O'Brien
Musk complains the uproar over Grok’s sexual deepfakes is an “excuse for censorship.”

Elon is continuing to play the martyr. While his AI chatbot is creating sexualized images of real people and children, he claims people are up in arms because “they just want to suppress free speech.” While he cries censorship, the UK is gearing up to potentially block X temporarily if it can’t get its deepfake porn-maker under control. Musk has responded in typical childish fashion, according to the BBC:

Musk reposted a number of messages on the site overnight criticising the government’s reproval of Grok - including one which showed AI-generated images of Prime Minister Sir Keir Starmer in a bikini.

Lauren Feiner
Lauren Feiner
Europe demands X retain documents amid Grok’s undressing spree.

The European Commission extended an order requiring X to keep documents related to Grok through the end of the year so that it can evaluate compliance with the Digital Services Act (DSA), Reuters reports. X is facing international scrutiny as its AI chatbot continues virtually undressing images without consent.

Hayden Field
Hayden Field
Elon Musk’s xAI raised $20 billion in funding.

The Series E round surpassed the $15 billion target, per a blog post, and xAI said that Grok 5 is in training and the company is “focused on launching innovative new consumer and enterprise products.” The news comes amid a widespread controversy in many countries over Grok’s ability to undress photos of women and children at a user’s request.

Grok is undressing children — can the law stop it?

Sexualized AI images violate consent and boundaries, but legal consequences can be elusive.

Hayden Field
It’s the great AGI rebrand

AI companies are sick of their favorite buzzword.

Hayden Field