Elon Musk’s X social media platform is facing unprecedented regulatory scrutiny across multiple continents, with authorities citing illegal content, non-consensual imagery, and inadequate moderation policies. The escalating pressure appears to have reached a tipping point, particularly following the controversial Grok AI nudification feature that generated thousands of explicit deepfakes daily.
Regulatory Actions Intensify Globally
French authorities raided X’s Paris offices investigating illegal content including non-consensual nudes and anti-Semitic material. Meanwhile, the UK Information Commissioner’s Office launched a formal investigation into xAI and X regarding personal data processing for Grok and its role in generating harmful sexualized content. U.S. Democratic senators called on Apple and Google to remove X from app stores, while Spain’s Prime Minister specifically criticized Musk for hosting illegal content and interfering in European politics.
The Grok Controversy and Business Impact
The Grok nudification feature became the catalyst for coordinated regulatory action. X eventually limited the AI’s ability to generate sexualized images, though workarounds remain. The incident exposed the platform’s deliberate monetization of controversial content, including “spicy” AI settings and NSFW companion options designed to push legal boundaries.
Musk has consistently dismissed regulatory actions as “politically motivated censorship,” maintaining that users should post anything legal. However, critics argue his approach facilitates illegal activity and endangers minors. With xAI planning an IPO later this year and depending on X’s data feed, regulatory restrictions could severely impact valuation and investor confidence. Musk’s confrontational public responses and personal attacks on authorities have only intensified scrutiny, potentially threatening his broader business ambitions.