Overview
- Prosecutors said the controversy may have been engineered to boost the valuation of X and xAI ahead of a planned June 2026 stock listing of a new entity from a SpaceX–xAI merger.
- Officials confirmed they contacted the U.S. Department of Justice and French lawyers at the Securities and Exchange Commission on March 17 to share their concerns.
- The French probe, which began over suspected algorithmic interference in politics, now also examines Grok’s dissemination of sexualised deepfakes and Holocaust denials.
- A watchdog estimated Grok generated about three million sexualised images in 11 days, including roughly 23,000 that appeared to depict children, with prosecutors reviewing Musk’s posts flagged as possible incitements.
- Regulatory and legal actions include investigations by the UK, EU and Ireland, a California lawsuit by three women, and French summons and office searches that Musk criticized as a political attack.