Elon Musk’s artificial‑intelligence company xAI is being sued over sexual deep‑fake images of children generated with its Grok model. The complaint alleges that the AI tools were used to make sexually explicit images of children and that xAI failed to adequately share information about an alleged perpetrator with authorities. xAI asked a judge to overturn a ruling allowing the use of pseudonyms in the case, according to bluesky. The company has acknowledged that Grok can generate images of minors in minimal clothing, reported by mashable.com. In February 2026, SpaceX absorbed xAI, valuing the AI company at $250 billion, as reported by startuphub.ai.

Accounts differ on the number and identity of the plaintiffs. Social reported that four people are suing xAI over the sexual deep‑fake images, while ? reported that three Jane Does, two of whom are under 18, filed the lawsuit. Both gdelt and other sources said three Tennessee teenagers were the original plaintiffs, with gdelt noting that the original plaintiffs were three Tennessee teenagers. The lawsuit also notes that one person was allegedly depicted as a child in the images, according to bluesky.

Two additional plaintiffs, one in Wyoming and one in Wisconsin, have joined the lawsuit, according to gdelt.

Reports also differ on the departure of xAI’s co‑founders. ? stated that ten of twelve original co‑founders have left the company, while another ? source said all co‑founders recruited to build xAI have now reportedly left.