The European Union has launched a formal investigation into xAI, Elon Musk's artificial intelligence company, following widespread concerns about its Grok chatbot. The probe focuses on Grok's generation of sexualized deepfakes, particularly those depicting women and children without consent. This investigation falls under the EU's Digital Services Act, which mandates platforms to mitigate risks.

This investigation stems from the public dissemination of non-consensual deepfakes generated by Grok, which were shared on X and the Grok app. The EU is assessing whether xAI took sufficient measures to prevent the spread of harmful content. If found in breach of the Digital Services Act, xAI could face fines of up to 6% of its global annual revenue, a significant penalty.

The EU's investigation follows similar inquiries by the UK and bans in Malaysia and Indonesia. xAI has since restricted Grok's use to paying subscribers and implemented technical restrictions. The company, known for its less restrictive approach to content moderation, faces scrutiny over its commitment to user safety. The outcome of this probe will set a precedent for AI content moderation.