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Musk's Grok announces new funding amid criticism over sexual deepfakes
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Musk's Grok announces new funding amid criticism over sexual deepfakes

FP News Desk • January 7, 2026, 09:22:51 IST
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xAI has generated $20 billion in its latest funding round, the startup announced on Tuesday. Some of the companies that featured in xAI’s Series E funding round include  Nvidia and Fidelity Management and Resource Company

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Musk's Grok announces new funding amid criticism over sexual deepfakes
xAI and Grok logos are seen in this illustration taken, February 16, 2025. Reuters

Elon Musk’s artificial intelligence company xAI has reported higher funding despite the widespread claims that its model generates sexually explicit and non-consensual images of women and young girls.

xAI has generated $20 billion in its latest funding round, the startup announced on Tuesday. Some of the companies that featured in xAI’s Series E funding round include  Nvidia, Fidelity Management and Resource Company, Qatar’s sovereign wealth fund, and Valor Equity Partners.

Despite criticism about Grok’s generative image feature, the company touted the technology to the investors at the latest round of funding.

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The company’s Colossus I and II data centres in Memphis now house over one million high-performing GPUs, the AI chips from Nvidia that are supercharging AI development.

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The startup has also rolled out its Grok 4 language models and Grok Voice, a real-time voice agent now available in Tesla vehicles.

According to xAI, its services reach approximately 600 million monthly active users across the X platform and Grok applications.

The company said it is currently training Grok 5 and plans to launch new consumer and enterprise products.

Grok’s image generation

Elon Musk’s AI chatbot  Grok landed in yet another trouble after it generated images depicting minors in minimal clothing on his social media platform X.

Screenshots of these images were shared by users on X. They showed Grok’s public media tab filled with such images. xAI said it was working to improve its systems to prevent future incidents. “There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing,” Grok said in a post on X in response to a user. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”

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“As noted, we’ve identified lapses in safeguards and are urgently fixing them—CSAM is illegal and prohibited,” xAI posted to the @Grok account on X, referring to child sexual abuse material. Many users on X have prompted Grok to generate sexualised, nonconsensual AI-altered versions of images in recent days, in some cases removing people’s clothing without their consent.

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