EU opens formal probe into Musk’s xAI over Grok deepfakes

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Why This Matters

The European Union has launched a formal investigation into xAI, a company founded by Elon Musk, over the creation and spread of deepfakes, specifically sexualized images of women and children. This investigation could lead to potential regulatory actions and reputational damage for xAI. The probe highlights the growing concern over the misuse of AI technology.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

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European regulators begin investigation into creation and spread of sexualised images of women and children

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Full article on Financial Times
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Original article published by Financial Times on January 26, 2026.
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