California probes xAI after Grok creates sexualized images

California's Department of Justice has opened a formal investigation into xAI after a wave of graphic, AI-generated images spread online. The inquiry was announced on January 14, 2026, and it will seek to determine whether xAI violated state laws that protect privacy and children. xAI operates Grok, a chatbot that was marketed with a 'spicy mode' and which has been used to produce sexualized images of real people without their consent.

Although xAI and X have stated that they will tighten controls, independent tests have shown that safety filters can be bypassed and explicit outputs continue to be created. If the company is found to have failed to adopt reasonable safeguards, regulators in multiple jurisdictions including the UK and EU may press for penalties or operational limits. Malaysia and Indonesia have already blocked access to Grok, while advocacy groups have urged Apple and Google to remove the apps from their stores.

The investigation will review internal records and the model's design choices, matters that could illuminate whether product features enabled large-scale misuse. Victims who find their images weaponized have reported harassment and reputational harm, and some institutions have severed ties with X in response. Consequences for xAI could range from fines to orders to change system behavior, depending on what regulators determine.

Moreover, the case highlights broader questions about how generative AI will be governed when tools can alter photographs with ease, and it may accelerate laws that restrict nonconsensual intimate imagery. Legal scholars have said that existing statutes like the Take It Down Act and California laws could be applied, while new requirements for proactive safety measures could be drafted. For users and developers alike, the episode underscores that technical innovation without robust protections can cause real-world harm.