As Elon Musk’s xAI faces mounting regulatory pressure worldwide over harmful AI-generated content, the company has moved to restrict Grok’s image-generation and editing features on X to paying subscribers only.
The decision follows growing concern from governments and regulators after Grok was found to generate non-consensual nude images and other sexually explicit content, including images involving minors. While the standalone Grok app continues to allow free image generation, the Grok account on X said this week that non-paying users would no longer be able to create or edit images directly on the platform.
Over the past year, Grok has played a growing role in boosting engagement and revenue for X, the social media platform formerly known as Twitter. However, its image-generation capabilities have drawn scrutiny from authorities in India, Europe, and Southeast Asia.
Earlier this week, the Grok X account issued a public apology after generating and sharing what it described as “an AI image of two young girls (estimated ages 12–16) in sexualized attire” based on a user prompt. A report by Wired said thousands of non-consensual nude images are being generated by Grok on X each day.
India’s Ministry of Electronics and Information Technology has demanded “corrective action” from X, citing content that is obscene, pornographic, or illegal under Indian law. Malaysia’s Communications and Multimedia Commission has similarly urged the platform to ensure Grok complies with local regulations.
Indonesia has warned it could ban X and Grok if the company fails to address what it called degrading images of women and children. In Europe, French authorities have opened an investigation into sexually explicit deepfakes, while the U.K.’s media regulator Ofcom has asked X to explain how it plans to meet its legal obligations to protect users.
Before the controversy, X was projected to earn $2.9 billion in 2025, according to Bloomberg, up 10 percent from 2024. That outlook is now under pressure, with revenue in the U.K. reportedly down 60 percent following the backlash.
xAI recently completed a funding round valuing the company at $20 billion, with plans to develop its Grok 5 model and build a new data center in Memphis, Tennessee.
