Tennessee minors sue Musk's xAI, alleging Grok generated sexual images of them Governments and regulators around the world have launched probes into xAI, imposed bans and demanded safeguards in a growing push to curb illegal and offensive material. Three Tennessee plaintiffs, including two minors, sued Elon Musk's xAI on Monday, alleging that it knowingly designed its Grok image generator to let people create sexually explicit content by using real photos of others. The lawsuit, filed in the San Jose, California federal court, is seeking class-action status for people in the United States who were reasonably identifiable in sexualized images or videos generated by Grok based on real images of themselves. The artificial intelligence company did not immediately respond to a request for comment. After an outcry over sexually explicit content generated by the chatbot, xAI said in January that it had blocked all users from editing images of real people in revealing clothing and from generating images of people in revealing clothing in jurisdictions where it's illegal. Governments and regulators around the world have also since launched probes, imposed bans and demanded safeguards in a growing push to curb illegal and offensive material.

This story appears in the April 2026 print edition. While some stories from this issue are not yet available to read online, you can explore more from the magazine . Get our editors' guide to what matters in the world, delivered to your inbox every weekday. The race to power AI is already remaking the physical world. Three Mile Island's cooling towers have until recently served as grave markers for America's nuclear-power industry. A s we drove through southwest Memphis, KeShaun Pearson told me to keep my window down--our destination was best tasted, not viewed. Along the way, we passed an abandoned coal plant to our right, then an active power plant to our left, equipped with enormous natural-gas turbines. Pearson, who directs the nonprofit Memphis Community Against Pollution, was bringing me to his hometown's latest industrial megaproject.

While SpaceX is routinely described as being owned by Elon Musk, he is not the only person in the capsule. While SpaceX is routinely described as being owned by Elon Musk, he is not the only person in the capsule. Elon Musk is taking SpaceX's minority shareholders for a ride T o Elon Musk's fanclub, there is nothing to see apart from more evidence of the great man's visionary genius. SpaceX, the rocket firm, is buying xAI, the artificial intelligence developer, and the combination of these two Musk-controlled entities is being valued at $1.25tn (£910bn). Or, as Musk described it, he is creating "the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world's foremost real-time information and free-speech platform".

Elon Musk's SpaceX is already one of the world's most valuable private companies. Elon Musk's SpaceX is already one of the world's most valuable private companies. Aerospace business and artificial intelligence firm to unite for IPO as world's most valuable private company Elon Musk's aerospace company SpaceX has acquired his artificial intelligence business xAI, in a $1.25tn (£910bn) merger that consolidates part of Musk's empire as SpaceX prepares to go public later this year. The two companies announced the deal on Monday in a statement on SpaceX's website, saying the merger would form "the most ambitious, vertically-integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world's foremost real-time information and free speech platform". SpaceX, one of the world's most valuable private companies, will gain xAI properties such as its Grok chatbot and the social media platform X.

Elon Musk's SpaceX is taking over his artificial intelligence (AI) start-up, as the billionaire continues to unify some of his many business interests. SpaceX confirmed the deal to acquire xAI, a smaller firm known for its Grok chatbot, posting a memo from Musk about the merger on its website. In the note, Musk said the combination would form an innovation engine putting AI, rockets, space-based internet, and media under one roof. Terms of the deal were not disclosed. However, a source familiar said it valued xAI at $125bn (£91bn) and SpaceX at $1tn, making it the most valuable private company ever.

Elon Musk Is Rolling xAI Into SpaceX--Creating the World's Most Valuable Private Company By fusing SpaceX and xAI--which acquired X last year--Elon Musk tightens his grip over technologies that shape national security, social media, and artificial intelligence. Elon Musk's rocket and satellite company SpaceX is acquiring his AI startup xAI, the centibillionaire announced on Monday. In a blog post, Musk said the acquisition was warranted because global electricity demand for AI cannot be met with "terrestrial solutions," and Silicon Valley will soon need to build data centers in space to power its AI ambitions. "In the long term, space-based AI is obviously the only way to scale," Musk wrote. "The only logical solution therefore is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called'space' for a reason."

Elon Musk is making a big bet on his future vision - will it work? Reports suggest that Elon Musk is eyeing up a merger involving SpaceX, Tesla and xAI, but what does he hope to achieve by consolidating his business empire? Elon Musk is a busy man, heading up multiple billion-dollar companies. While he is increasingly a divisive figure, there is no doubt that Tesla and SpaceX, his two most important ventures, have done much to advance the future of electric cars and spacecraft, respectively. But a series of corporate moves this week suggests Musk has a new vision of the future - and he may be combining all his companies to get there.

Tesla says its annual revenue has fallen for the first time as the electric vehicle (EV) maker shifts it focus to artificial intelligence (AI) and robotics. The company, which is run by multi-billionaire Elon Musk, reported a 3% decline in total revenues in 2025, while profits fell 61% in the last three months of the year. Tesla also announced plans to end production of its Model S and Model X vehicles. It will now use the manufacturing plant in California that made those cars to produce its line of humanoid robots - known as Optimus. In January, China's BYD overtook Tesla as the world's biggest EV maker, while Musk's involvement in politics both in the US and abroad has proved controversial.

At least 37 attorneys general for US states and territories are taking action against xAI after Grok generated a flood of nonconsensual sexual images of women and minors. At least 37 attorneys general for US states and territories are taking action against xAI after people used its chatbot, Grok, to generate a flood of sexualized images earlier this year. On Friday, a bipartisan group of 35 attorneys general published an open letter to xAI demanding it "immediately take all available additional steps to protect the public and users of your platforms, especially the women and girls who are the overwhelming target of [non-consensual intimate images]." The letter comes amid an international wave of regulator attention on Grok users creating intimate deepfake images of people without their consent, as well as sexualized images of children. A recent report from the Center for Countering Digital Hate estimates that during an 11-day period starting on December 29, Grok's account on X generated around 3 million photorealistic sexualized images, including around 23,000 sexualized images of children.

Apple's Siri AI will be powered by Gemini Governor Gavin Newsom called for an investigation into xAI. An illustration photo shows Grok logo displayed on a smartphone with the xAI logo in the background . California authorities have launched an investigation into xAI following weeks of reports that the chatbot was generating sexualized images of children. The statement cited a report that more than half of the 20,000 images generated by xAI between Christmas and New Years depicted people in minimal clothing, including some that appeared to be children. We have zero tolerance for the AI-based creation and dissemination of nonconsensual intimate images or of child sexual abuse material," Bonta said. "Today, my office formally announces an investigation into xAI to determine whether and how xAI violated the law.