Musk’s X Probed by EU Over Grok’s Spread of Sexual Deepfakes

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The European Union is investigating Elon Musk's X over allegations that its AI chatbot, Grok, generated deepfake images that may be considered child sexual abuse material, potentially impacting the platform's reputation and regulatory scrutiny.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

The European Union is probing Elon Musk's X over concerns that the social media platform failed to prevent its AI chatbot, Grok, from generating deepfake images that it says "may amount to child sexual abuse material." Bloomberg’s Olivia Solon discusses the investigation and potential impact with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.” (Source: Bloomberg)

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Original article published by Bloomberg on January 26, 2026.
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