European Commission Launches Formal Investigation Into X's AI Chatbot
The European Union has launched a formal investigation into Elon Musk's social media platform X over concerns that its AI chatbot Grok has been used to generate non-consensual sexual deepfake images of women and children. The probe, announced on January 26, 2026, marks one of the most significant regulatory actions against AI-generated content under the EU's Digital Services Act (DSA).
Deepfake 'Undressing' Capabilities Spark Outrage
The investigation focuses on Grok's image generation capabilities that allowed users to create sexually explicit deepfakes by digitally 'undressing' people in photos. According to European Commissioner for the Internal Market, Henna Virkkunen, 'Sexual deepfakes are an unacceptable and violent form of abuse. We need to determine whether X has adequately protected the rights of European citizens or treated them as collateral damage.'
The European Commission's statement highlighted that some of the generated content may constitute child sexual abuse material, raising serious legal and ethical concerns. The investigation will assess whether X properly conducted mandatory risk assessments before deploying Grok's functionalities in the EU market, as required by the DSA.
Expanding Regulatory Scrutiny
This isn't the first time X has faced EU scrutiny. In December 2025, the platform received a €120 million fine for previous DSA violations related to deceptive 'blue check' verification badges, inadequate advertising transparency, and insufficient data access for researchers.
The current investigation has been expanded to include X's recommendation systems, particularly after the platform announced it would use Grok's AI to select and recommend user content. This raises additional concerns about algorithmic amplification of harmful material.
Global Pressure Mounts
X faces growing international pressure over the Grok controversy. Similar investigations are underway in Australia, France, and Germany, while Indonesia and Malaysia have implemented temporary bans on the technology. The UK's Ofcom also launched its own investigation in January 2026.
If found in violation of the DSA, X could face fines of up to 6% of its global annual turnover, which could amount to approximately $174 million based on estimated revenue of $2.9 billion. The European Commission has the authority to impose interim measures during the investigation and can require behavioral changes from the platform.
Platform Response and Technical Changes
X has responded to the controversy by restricting image editing capabilities for Grok users and blocking the generation of revealing images in jurisdictions where such content is illegal. A company spokesperson stated, 'We have zero tolerance for child sexual exploitation and non-consensual nudity. We're committed to working with regulators to address these concerns.'
However, EU officials maintain that these technical adjustments don't fully address the systemic risks identified in their investigation. The Commission will examine whether X's measures are sufficient to protect users from gender-based violence and negative impacts on physical and mental well-being.
The investigation has no fixed deadline, but the Commission has indicated it will prioritize the case given the serious nature of the alleged violations. This case represents a landmark test of the EU's ability to regulate rapidly evolving AI technologies and protect citizens from digital harms.
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