Elon Musk’s xAI is suing a man for using its flagship chatbot, Grok, to create nonconsensual sexual deepfakes of women and children.

The Grok user, a 67-year-old in South Carolina named Terry Wayne Harwood, was arrested in March on multiple counts of sexual exploitation of a minor. According to the allegations, Harwood possessed and distributed child sexual abuse material, or CSAM. Filed earlier this week in Texas, xAI’s lawsuit accuses Harwood of using Grok to do just that, per Reuters. He apparently used two different Grok accounts, according to the lawsuit, and though xAI claims that Grok refused some of Harwood’s requests, he was able to tailor prompts to sidestep Grok’s safety guardrails and create the disturbing imagery.

The lawsuit follows a massive deepfake scandal that unfolded over the winter, as X users realized that Grok — which had been updated with a new photo and video-editing feature — could be used to quickly and easily alter images to artificially undress real people and depict them in sexual positions.

As Futurism reported, some of these images depicted real women in sexually violent and degrading scenarios. Some of the nonconsensual deepfakes depicted minors. The Center for Countering Digital Hate estimated that during an 11-day period, Grok “generated an estimated 3 million sexualized images, including 23,000 of children.”

Now, as it sues one of its users for the creation of illegal content, xAI is fighting multiple lawsuits over Grok-generated CSAM. In March, teenagers in Tennessee sued the company in a proposed class action, alleging that Grok had been used to create deepfakes of them and more than a dozen other minors. Just last week, the suit was amended to include allegations that a man used Grok to generate more than 7,000 sexual deepfakes of his stepdaughter. The amended complaint alleges that the man’s prompts largely went unflagged by Grok’s guardrails.

In another high-profile case, the former conservative influencer (and mother to one of Musk’s many children) Ashley St. Clair sued xAI after she was aggressively targeted by sexualized deepfakes, including one depicting her as a minor.

Law enforcement professionals and child online safety experts say that AI has led to an overwhelming and disorienting new flood of CSAM, as Bloomberg detailed in a devastating report earlier this year. It’s also created a host of new challenges for those attempting to find and arrest child predators, as AI has made it more difficult for investigators to determine whether a child depicted in abuse material is real or AI-generated.

In its latest lawsuit, xAI accuses Harwood of engaging in a “calculated scheme to weaponize Plaintiff’s ⁠tool ​for criminal ends, exposing real victims to profound ​and lasting harm, while exposing Plaintiff to significant legal risk and reputational damage.”

xAI — which is now owned by SpaceX and has since been renamed to SpaceXAI — also alleges that it “enforces its rules ​against violators through account suspensions, account terminations, and by reporting suspected child sexual abuse ‌material ⁠to the National Center for Missing and Exploited Children,” or NCMEC. It also claims that xAI “has suspended 52,222 accounts and made 73,604 reports to NCMEC in 2026, resulting in (at least) 244 arrests.”

But despite its best efforts, it’s clear that the startup still has a serious deepfake problem. If a user is engaging in deeply disturbing criminal activity using a company’s service, it’s reasonable for a company to hold them to account. But suing users doesn’t fix a chatbot’s failing guardrails, facilitating their crimes.

More on Grok and deepfakes: Grok Linked to Sickening Crime in Lawsuit That Puts SpaceX in Crosshairs

The post Elon Musk’s xAI, Which is Being Sued Over AI-Generated Sexual Deepfakes, Sues Grok User Over AI-Generated Sexual Deepfakes appeared first on Futurism.

Facing mounting pressure to acknowledge that Grok can still be used to generate non-consensual sexualized images of adults and minors, xAI filed a lawsuit Tuesday, suing the first user that Elon Musk’s firm has accused of using its chatbot to create illegal content.

The complaint targets Terry Wayne Harwood, who was arrested earlier this year for possession and distribution of child sexual abuse materials (CSAM), the South Carolina attorney’s office announced.

As xAI alleged, the company assisted in that arrest after discovering that Harwood had been using two xAI accounts for months to undress or “nudify” non-sexual images of multiple victims, including a young girl who appeared to be as young as 10.

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Elon Musk’s AI startup, xAI, is in turmoil behind the scenes. 

The company is constantly playing catch-up with rivals Anthropic, with Musk personally obsessed with having his chatbot Grok match Anthropic’s Claude, Bloomberg reports. And its merger with SpaceX, followed by the latter going public in a historic IPO, led to dozens of employees leaving the company, throwing daily operations into chaos.

To get the house in order, Musk promoted Michael Nicolls to lead xAI (which was recently renamed SpaceXAI). But his work was cut out for him. As part of Musk’s plan to rebuild the company, xAI was seeking to slash up to 30 percent of its workforce in March, and that led to employees being fired without anyone informing them, according to Bloomberg.

Its efforts to hire new talent were equally fraught. Promising candidates would get interviewed and not hear back, because the understaffed human resources department couldn’t finish the necessary paperwork, according to the reporting.

Another challenge was Musk’s obsession with Claude. Reportedly, every time the Anthropic chatbot got an update, Musk demanded that Grok should match it. Numerous projects referenced Claude and some Slack channels were even named after it. Keeping up with Claude had become the startup’s explicit mission.

“Our near-term goals are to match the performance of Claude,” Nicolls wrote in a memo to staffers after becoming xAI president, per Bloomberg.

Some began to doubt Musk’s leadership, believing that the centibillionaire, whose success was built on making cars and engineering rockets, was out of his depth. One of his most ambitious projects, Macrohard, aimed to create a powerful AI agent system capable of emulating an entire software company — something that experts are skeptical is even possible. Soon, some employees complained that creating large language models was much different from creating hardware, per Bloomberg, believing Musk didn’t understand AI.

Other controversies further sowed chaos and dampened morale. At the beginning of the year, Grok sparked outrage for being used to generate millions of conconsensual nudes of real people, including children, disturbing some employees, according to Bloomberg. xAI also told employees that it would pay them to feed their tax returns to train Grok, but never did.

xAI cofounders soon gave a clear vote of no confidence in the company’s direction. In February, some began leaving as Musk prepared to merge xAI with SpaceX ahead of its IPO, and soon after the merger was completed, all eleven of xAI’s cofounders had fled the company.

As the IPO date loomed ever closer, xAI company found itself in such a precarious position that it sold some of its glut of computing power to Anthropic — an ironic development given Musk’s desperate attempts to have xAI emulate its AI chatbot, Claude.

The largest AI companies, including Anthropic, have all struggled to find or build the computing capacity necessary to train and run their powerful systems. xAI is the rare exception, with its model using just 11 percent of its vast array of computing power in April, according to Bloomberg. It also agreed to sell computing power to Google and another AI startup called Reflection.

These agreements secured a multibillion dollar revenue stream, but directly benefited xAI’s biggest rivals — and in a way, waved a big white flag. xAI was practically admitting it wasn’t on the same level as the industry’s top dogs, and was contenting itself with selling hardware, and not building the best AI model.

More on xAI: Grok’s Foul-Mouthed AI “Translation” Feature Puts Unspeakably Ghoulish Words Into Users’ Mouths

The post Elon Musk’s AI Startup Is a Complete Disaster Behind the Scenes appeared first on Futurism.