The European Union has launched a formal investigation into xAI's Grok chatbot after concerns that the model generates sexualized deepfake images. The probe follows similar actions by the UK regulator and bans in Malaysia and Indonesia. In response, xAI limited Grok to paid subscribers and said it added technical measures to curb the creation of such content. Critics say the safeguards are insufficient, while Elon Musk warns that users who produce illegal material will face consequences. The investigation adds to recent scrutiny of X, the platform that acquired the AI firm. Read more →

Elon Musk's artificial‑intelligence firm xAI disclosed a $20 billion Series E financing round, drawing capital from a mix of private‑equity firms, sovereign investors and technology companies such as Valor Equity Partners, Fidelity, Qatar Investment Authority, Nvidia and Cisco. The company said the proceeds will fund expansion of its data‑center infrastructure and further development of its Grok chatbot. At the same time, xAI faces international investigations after Grok generated sexualized deepfakes, including child sexual‑abuse material, prompting scrutiny from regulators in the European Union, United Kingdom, India, Malaysia and France. Read more →

The National Highway Traffic Safety Administration has launched an investigation into more than 2.8 million Tesla vehicles equipped with the Full Self-Driving (FSD) system. The probe focuses on traffic safety incidents, including red‑light violations, wrong‑way travel, and railroad‑crossing failures, encompassing 58 reported events, 14 crashes and 23 injuries. The inquiry arrives as Tesla seeks regulatory approval for its robotaxi service. Read more →