California regulators have intensified their investigation into xAI, ordering the company to cease the creation of nonconsensual sexual imagery via its Grok chatbot. The California Attorney General’s Office, led by Rob Bonta, is probing allegations that xAI is facilitating the production of deepfake intimate images, including those involving minors. A cease-and-desist letter has been issued, demanding immediate action to halt this content creation. This scrutiny follows similar investigations in the U.K., Canada, and Japan, with Grok being temporarily blocked in Malaysia and Indonesia due to explicit features.
In parallel, Elon Musk is pursuing a lawsuit against OpenAI and Microsoft, seeking damages between $79 billion and $134 billion. Musk claims these companies have deviated from their original nonprofit mission. His suit points to his foundational role in OpenAI’s early success and asserts that Microsoft has benefited from alleged misconduct. These concurrent events reflect escalating regulatory and legal pressures on AI developers amid ethical concerns.
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