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Elon Musk’s xAI Raises $20B Amid Backlash Over Grok AI Deepfakes

admin by admin
January 7, 2026
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Elon Musk’s xAI Raises $20B Amid Backlash Over Grok AI Deepfakes
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Elon Musk’s xAI has raised $20B in its newest funding round, amid backlash over chatbot Grok creating sexualized imagery of girls and youngsters.

The corporate mentioned the Collection F funding spherical had exceeded a $15B goal, with traders together with Valor Fairness Companions, Stepstone Group, Constancy Administration & Analysis Firm, Qatar Funding Authority, MGX and Baron Capital Group, together with earlier traders Nvidia and Cisco Investments.

The elevate comes amid an enormous backlash over Grok, the X chatbot. Grok Think about was rolled out late final yr, permitting customers to create deepfakes, together with sexualized photos. There have been quite a few studies of customers asking for non-consensual designs of underage ladies, together with one within the The Guardian that discovered a image of a 14-year-old Stranger Issues actor in a bikini.

This prompted a UK authorities minister to yesterday situation an announcement demanding Musk stops Grok from creating the photographs. British regulator Ofcom has additionally made “pressing contact with X, which final week issued a warning to customers to keep away from unlawful imagery however has thus far not outwardly taken additional steps. Regulatory probes are additionally underway in Malaysia and India, CNBC reported.

xAI mentioned as we speak’s money elevate would “speed up our world-leading infrastructure buildout, allow the fast improvement and deployment of transformative AI merchandise reaching billions of customers, and gasoline groundbreaking analysis advancing xAI’s core mission: Understanding the universe.”

In its launch as we speak, X didn’t deal with the controversy over Grok Think about, however referred to as praised its chatbots “lightning-fast picture and video technology fashions that brings state-of-the-art multimodal understanding, modifying, and technology capabilities.”

xAI famous that the newest incarnation of the AI instrument, Grok 5, is “at the moment in coaching,” and that the corporate is “centered on launching progressive new client and enterprise merchandise that harness the facility of Grok, Colossus, and to remodel how we dwell, work, and play.”

xAI has been the dad or mum firm of Musk’s social platform, X, following an acquisition in March final yr.

Tags: 20BBacklashdeepfakesElonGrokMusksraisesxAI
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