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Probes into Grok-generated porn could limit xAI's market access: SpaceX
24 Apr 2026

SpaceX has warned that ongoing investigations into sexually abusive AI imagery by its subsidiary, xAI, could impact market access.

The warning was issued in a recent prospectus reviewed by Reuters.

The document highlighted that several global agencies are "actively investigating and making inquiries relating to social media or the use of AI" over issues like advertising, consumer protection, and harmful content distribution.

xAI under global scrutiny for sexualized imagery by Grok chatbot
Global investigations

The warning comes as xAI faces global scrutiny over the creation and distribution of sexualized images involving its AI chatbot, Grok.

The Irish Data Protection Commission launched an investigation into the matter in February, which was cited as an example in SpaceX's regulatory filing.

These multiple investigations could potentially jeopardize xAI's access to certain markets, according to its parent company SpaceX.

Other potential risks highlighted in filing
Risk factors

The S-1 regulatory filing from SpaceX also highlighted other potential risks.

It said, "actively investigating and making inquiries relating to social media or the use of AI" in relation to advertising, consumer protection, and harmful content distribution.

This further emphasizes the possible challenges xAI could face in maintaining its market presence amid ongoing investigations into its controversial AI imagery practices.