Elon Musk announced that Tesla and SpaceX will jointly build a semiconductor fabrication facility, called Terafab, in Austin, Texas. The plant aims to produce chips at scale for robotics, artificial intelligence and space‑based data centers that support Musk’s enterprises. While Musk emphasized the necessity of the fab to secure future chip supply, industry observers note the complexity, massive capital requirements and Musk’s lack of semiconductor experience. No timeline was provided for construction or production, leaving questions about when the facility might become operational. Read more →

Three teenage girls and their guardians have filed a class-action lawsuit alleging that Elon Musk's xAI created and distributed child sexual abuse material using its Grok AI system. The complaint says Grok enabled users to generate nonconsensual intimate images of minors, producing millions of “undressed” or “nudified” images in a short period. Plaintiffs argue xAI failed to implement industry‑standard safeguards and licensed the technology to third parties that facilitated the abuse. The lawsuit highlights growing concerns about AI‑generated deepfake pornography and calls for stronger protections. Read more →

Three Tennessee teens have filed a class‑action lawsuit against Elon Musk’s xAI, alleging that the company’s Grok chatbot produced AI‑generated child sexual abuse material (CSAM) after launching a “spicy mode” last year. The plaintiffs claim the images and videos were created using their real faces, shared on Discord and traded on Telegram, and that xAI failed to test the safety of the feature. The suit seeks damages and an injunction to stop further generation of illegal content, while lawmakers and regulators have already begun investigations into Grok’s behavior. Read more →

Three teenagers from Tennessee have filed a class action lawsuit in California against xAI, alleging that the company’s AI model Grok used their photos to create sexualized images and videos of minors. The filing claims the generated content was shared on platforms such as Discord and Telegram, causing severe emotional distress and violating laws that prohibit child abuse material. xAI has not commented on the suit, while it continues to grapple with multiple investigations in the United States and Europe over similar allegations involving Grok’s image‑generation capabilities. Read more →

Elon Musk's xAI is experiencing a wave of departures among its original co‑founders, leaving only two of the eleven founders remaining. Staff report that constant upheaval is hurting morale, while Musk reorganizes projects such as the "Macrohard" effort and redeploys talent from Tesla. The company is also reaching back to previously rejected candidates and poaching engineers from rivals to fill gaps, but the ongoing turnover underscores challenges in maintaining stability. Read more →