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French prosecutors suspect Musk encouraged deepfakes row to inflate X value
Paris (France) (AFP) - French prosecutors said Saturday they had alerted US authorities to a suspicion that tech tycoon Elon Musk had encouraged the controversy over sexualised deepfakes on X to "artificially" increase the value of his company. The social media network's Grok AI chatbot stirred outrage earlier this year over it generating images of women and girls in minimal attire without their consent. "The controversy sparked by sexually explicit deepfakes generated by Grok (X's AI) may have been deliberately generated in order to artificially boost the value of companies X and X AI," the Paris prosecutor's office said, confirming a report in Le Monde newspaper on Friday. This could have been done towards "the planned June 2026 stock market listing of the new entity created by the merger" between Space X and X AI, it added. The prosecutor's office said it had on Tuesday reached out to the US Department of Justice, as well as French lawyers at the US Securities and Exchange Commission (SEC), a financial market regulation body, to share its concerns. X's lawyer in France was not immediately available for comment. French authorities are investigating X over allegations that its algorithm was used to interfere in French politics, as well as Grok's dissemination of Holocaust denials and the sexualised deepfakes. AI chat bot Grok has its own account on the X social network allowing users to interact with it. For a period, users could tag the bot in posts to request image generation and editing, receiving the image in a reply from Grok. Many sent Grok photos of women or tagged the bot in replies to women's photo posts, giving it prompts such as "put her in a bikini" or "remove her clothes". 'Incitements' It generated an estimated three million sexualised images -- mostly of women, though also 23,000 that appeared to depict children -- in 11 days, the Center for Countering Digital Hate (CCDH), a nonprofit watchdog, said in late January. Le Monde pointed to "several posts by Musk, published at the height of the controversy, which prosecutors interpret as incitements to generate non-consensual images". "The billionaire posted several messages in which he expressed delight, using numerous emojis, about his AI engine's "undressing" capabilities, even sharing an image of himself in which his chatbot depicted him wearing a bikini," Le Monde reported. Daily average app downloads for Grok worldwide soared by 72 percent from January 1 to January 19 compared to the same period in December, the Washington Post has cited market intelligence firm Sensor Tower as saying. French authorities last month summoned Musk to a "voluntary interview" and searched the local offices of his social media network, in what Musk called a "political attack". Both Britain and the European Union have also opened investigations into the creation of the sexualised deepfakes.
[2]
French prosecutors suspect Musk encouraged deepfakes row to inflate X value
French prosecutors said Saturday they had alerted U.S. authorities to a suspicion that tech tycoon Elon Musk had encouraged controversy over sexualized deepfakes on X to "artificially" increase the value of his company. The social media network's Grok AI chatbot stirred outrage earlier this year over it generating images of naked women and girls without their consent. "The controversy sparked by sexually explicit deepfakes generated by Grok (X's AI) may have been deliberately generated in order to artificially boost the value of companies X and xAI," the Paris prosecutor's office said, confirming a report in Le Monde newspaper on Friday.
[3]
French prosecutors suspect Musk encouraged deepfakes row to inflate X value
PARIS - French prosecutors said Saturday they had alerted U.S. authorities to a suspicion that tech tycoon Elon Musk had encouraged the controversy over sexualised deepfakes on X to "artificially" increase the value of his company. The social media network's Grok AI chatbot stirred outrage earlier this year over it generating images of women and girls in minimal attire without their consent. "The controversy sparked by sexually explicit deepfakes generated by Grok (X's AI) may have been deliberately generated in order to artificially boost the value of companies X and X AI," the Paris prosecutor's office said, confirming a report in Le Monde newspaper on Friday. This could have been done towards "the planned June 2026 stock market listing of the new entity created by the merger" between Space X and X AI, it added. The prosecutor's office said it had on Tuesday reached out to the U.S. Department of Justice, as well as French lawyers at the U.S. Securities and Exchange Commission (SEC), a financial market regulation body, to share its concerns. X's lawyer in France was not immediately available for comment. French authorities are investigating X over allegations that its algorithm was used to interfere in French politics, as well as Grok's dissemination of Holocaust denials and the sexualised deepfakes. AI chat bot Grok has its own account on the X social network allowing users to interact with it. For a period, users could tag the bot in posts to request image generation and editing, receiving the image in a reply from Grok. Many sent Grok photos of women or tagged the bot in replies to women's photo posts, giving it prompts such as "put her in a bikini" or "remove her clothes". It generated an estimated three million sexualised images -- mostly of women, though also 23,000 that appeared to depict children -- in 11 days, the Center for Countering Digital Hate (CCDH), a nonprofit watchdog, said in late January. Le Monde pointed to "several posts by Musk, published at the height of the controversy, which prosecutors interpret as incitements to generate non-consensual images". "The billionaire posted several messages in which he expressed delight, using numerous emojis, about his AI engine's "undressing" capabilities, even sharing an image of himself in which his chatbot depicted him wearing a bikini," Le Monde reported. Daily average app downloads for Grok worldwide soared by 72 per cent from January 1 to January 19 compared to the same period in December, the Washington Post has cited market intelligence firm Sensor Tower as saying. French authorities last month summoned Musk to a "voluntary interview" and searched the local offices of his social media network, in what Musk called a "political attack". Both Britain and the European Union have also opened investigations into the creation of the sexualised deepfakes.
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French prosecutors have alerted US authorities to suspicions that Elon Musk may have deliberately encouraged the Grok AI deepfakes controversy to artificially boost X's value. The investigation centers on whether the sexualized deepfakes scandal was orchestrated ahead of a planned June 2026 stock market listing involving SpaceX and xAI merger.
French prosecutors have contacted US authorities with allegations that Elon Musk may have deliberately encouraged controversy surrounding sexualized deepfakes on X to artificially inflate X value ahead of a planned stock market listing. The Paris prosecutor's office confirmed on Saturday that it reached out to the US Department of Justice and French lawyers at the SEC on Tuesday to share concerns about potential market manipulation
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Source: Japan Times
According to prosecutors, the deepfakes row may have been orchestrated to boost X and xAI value in preparation for a planned June 2026 stock market listing of a new entity created by merging SpaceX and xAI
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.The Grok AI chatbot ignited widespread outrage earlier this year after generating images of women and girls in minimal attire without their consent. Users could tag the bot in posts to request image generation and editing, with many sending prompts such as "put her in a bikini" or "remove her clothes"
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Source: France 24
The Center for Countering Digital Hate reported that Grok generated an estimated three million sexualized images—mostly of women, though also 23,000 that appeared to depict children—in just 11 days during late January
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. French authorities are now investigating X over multiple allegations, including Grok's dissemination of Holocaust denials and interference in French politics through its algorithm.Le Monde reported that French prosecutors interpret several posts by Elon Musk published during the height of the controversy as incitements to generate non-consensual images. "The billionaire posted several messages in which he expressed delight, using numerous emojis, about his AI engine's 'undressing' capabilities, even sharing an image of himself in which his chatbot depicted him wearing a bikini," Le Monde reported
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. The timing appears significant: daily average app downloads for Grok worldwide soared by 72 percent from January 1 to January 19 compared to the same period in December, according to market intelligence firm Sensor Tower cited by the Washington Post3
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French authorities summoned Elon Musk to a "voluntary interview" last month and searched X's local offices, actions Musk characterized as a "political attack"
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. The European Union and Britain have also opened investigations into the creation of the sexualized deepfakes2
. The involvement of US authorities through market regulation bodies like the SEC suggests this case could have far-reaching implications for how AI companies are held accountable for both content moderation failures and potential securities violations. X's lawyer in France was not immediately available for comment on the allegations1
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