European Commission Launches Investigation Into X's Grok AI Over Explicit Image Editing
Get Market Alerts
Weekly insights + SMS alerts
When AI Image Editing Goes Wrong
The European Commission is launching a formal investigation into X's AI chatbot Grok, specifically targeting an image-editing feature that's been used to create explicit content without consent. According to German newspaper Handelsblatt, the tool has been misused to virtually undress images of real women and underage girls.
The controversy traces back to last summer when X upgraded Grok with a paid feature called "Spicy Mode," which let users generate explicit content. After global backlash, X implemented technological safeguards to prevent editing images of real people into revealing clothing. The company also scrubbed sexualized Grok-altered images of children from its platform and banned the accounts responsible.
But apparently, that wasn't enough to satisfy European regulators.
High Stakes Under EU Rules
Under the EU's Digital Services Act, the European Commission has requested information from X and is now reviewing the company's response. If regulators determine X violated EU online platform regulations, the penalties could sting—up to 6% of global annual revenue.
X's Safety account has maintained that the company takes action against illegal content, including Child Sexual Abuse Material, by removing it, permanently suspending accounts, and working with local governments and law enforcement when necessary.
The EU investigation follows decisive action by Malaysia and Indonesia, which blocked access to Grok entirely after discovering its potential for generating and distributing nonconsensual explicit content and child sexual abuse material. Both countries cited "repeated failures by X Corp" to address the risks.
French authorities have also launched their own investigation after the AI image generator faced international criticism for creating nonconsensual sexualized images, including those of minors.
Political Complications
Here's where things get interesting. According to Handelsblatt, the European Commission actually postponed opening this procedure against Grok—initially planned for last Monday—over concerns about angering President Donald Trump. Trump has accused Europe's Digital Services Act of unfairly targeting American tech companies and recently threatened additional tariffs over Greenland while criticizing EU actions against U.S. digital firms.
In December, Vice President JD Vance jumped into the fray, criticizing the EU for its alleged plans to fine X and accusing European regulators of censorship and attacking American companies.
So now the Commission faces a delicate balancing act: enforcing its platform regulations while navigating increasingly tense transatlantic tech politics.
More News

Markets Rise as U.S. and Iran Hit Pause on Strikes; Big Tech Earnings and Fed Decision Loom

Trump Admin to Pump $1 Billion into this "Off-the-Radar" AI Stock

Oil Tumbles and Stocks Rise as Trump Gives Iran Diplomacy 'Some Space'

Iran Says It Won't Let the US Dictate the War's Pace, Strait of Hormuz Stays Closed

Trump’s Tariff Gambit Puts Canadian Oil in the Crosshairs—and U.S. Gas Prices on the Line

Your Download Link (Expiring)

Sen. John Kennedy Warns Trump's Saudi Nuclear Deal Sends Wrong Signal Amid Iran Tensions: 'The World Is on a Hair Trigger'

Apple's AI Strategy Is a High-Stakes Bet—and One Analyst Thinks It's Wrong
Get Market News Alerts
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
Featured Articles
View all news
Markets Rise as U.S. and Iran Hit Pause on Strikes; Big Tech Earnings and Fed Decision Loom

Trump Admin to Pump $1 Billion into this "Off-the-Radar" AI Stock (Ad)

Oil Tumbles and Stocks Rise as Trump Gives Iran Diplomacy 'Some Space'

Iran Says It Won't Let the US Dictate the War's Pace, Strait of Hormuz Stays Closed

Trump’s Tariff Gambit Puts Canadian Oil in the Crosshairs—and U.S. Gas Prices on the Line

Have you tried Elon Musk’s 70X AI agent? (Ad)

Sen. John Kennedy Warns Trump's Saudi Nuclear Deal Sends Wrong Signal Amid Iran Tensions: 'The World Is on a Hair Trigger'






