California Attorney General launches investigation into xAI, Grok

Watch on YouTube ↗  |  January 14, 2026 at 19:04  |  1:08  |  CNBC
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Kate Rooney — Technology Reporter

Summary

CNBC's Kate Rooney reports that California Attorney General Rob Bonta has opened an investigation into Elon Musk's xAI over its Grok chatbot allegedly facilitating non-consensual sexually explicit deepfake images, including images of minors. The AG questions whether xAI took adequate steps to prevent misuse of the technology. xAI has not publicly responded, while Musk addressed the matter on social media last week. The report also notes xAI raised about $20 billion last week and says the controversy may threaten its enterprise partnerships while adding to existing investigations.

  • California Attorney General opens investigation into xAI's Grok.
  • Probe focuses on non-consensual sexually explicit deepfake images, including minors.
  • AG Rob Bonta questions xAI's safeguards and calls the volume of incidents shocking.
  • xAI has not publicly responded; Musk addressed the matter on social media last week.
  • xAI reportedly raised about $20 billion last week amid the controversy.
  • The controversy may threaten xAI's ability to partner with enterprises.
  • The investigation adds to several existing probes involving xAI.
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