The European Union has started a formal investigation into Elon Musk’s social media platform X. The focus is on Grok, X’s artificial intelligence chatbot, which may have created deepfake images that could be considered child sexual abuse material.

The EU will check whether X followed its legal duties under the Digital Services Act, a law requiring platforms to identify and reduce risks from AI tools and online content. The probe will look at how Grok was used across all 27 EU countries.

The investigation is part of growing scrutiny over X’s content moderation. It could also strain relations between the EU and the United States.

The EU is specifically examining whether X handled risks linked to Grok properly. This includes concerns that the AI may have created sexualised deepfake images of women and children without consent. These images are illegal and considered a serious violation of rights.

The Digital Services Act, which came into effect in 2023, gives the EU the power to fine companies up to 6% of their global annual revenue if they fail to stop illegal content, reduce systemic risks, or meet transparency rules.

The investigation comes after rising criticism of Grok globally. Users in several countries reported that the chatbot produced sexualised images and posted them on X. Regulators and child safety groups have raised alarms.

The UK’s Ofcom is already investigating whether Grok broke national safety rules. Authorities in France and India have also raised concerns, saying the chatbot illegally created sexualised images of people without consent.

X, owned by Musk’s AI company xAI, has said it removes illegal content, including child sexual abuse material, suspends accounts that break the rules, and works with law enforcement when needed.

The probe also follows a separate EU penalty of €120 million against X under the DSA. That fine was for misleading users with its paid verification system, limiting researcher access to data, and lacking proper advertising transparency. The US criticized the penalty, calling EU rules an attack on free speech and American tech. European officials, however, maintain that the DSA is meant to protect users, not restrict lawful expression.

This investigation into Grok shows the EU is serious about holding tech companies accountable for AI risks, especially when it comes to illegal and harmful content affecting vulnerable groups.

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