SACRAMENTO — California Attorney General Rob Bonta launched a formal investigation Wednesday into xAI, the artificial intelligence firm owned by Elon Musk. The probe follows reports that the company’s tools were used to create "deepfakes"—digitally altered, realistic images—of people without their permission.

The investigation, conducted through the California Department of Justice, focuses on the "Grok" AI tool. Officials allege the software was used to generate sexually explicit pictures of both adults and minors without their consent.

According to data from the state Department of Justice, xAI’s software was responsible for a significant amount of explicit content found online over the holidays. Between December 25, 2025, and January 1, 2026, the software generated more than 10,000 of the 20,000 explicit or suggestive images shared across various platforms.

Allegations of Encouraged Misuse

The Attorney General’s office alleged that xAI’s marketing of a "spicy mode" feature directly encouraged the production of explicit material. While the social media platform X tried to stop the abuse by only letting paid subscribers make images, those efforts failed to prevent the pictures from being created and shared.

The investigation follows reports from a high-profile social media influencer who was targeted by users of the Grok generator. The influencer stated the tool was used to create sexualized images of her, including a fake picture based on a photograph taken when she was a minor.

On January 13, Governor Gavin Newsom characterized the company’s actions as "vile," stating the platform had become a tool for spreading child abuse images online.

Legal Focus

The investigation focuses on two main California laws:

  • AB 602: This 2023 law prohibits the creation or sharing of sexually explicit deepfakes without the person's permission. It provides a legal way for victims to sue for damages and seek court-ordered removal of the images.
  • Child Sexual Abuse Material (CSAM) Laws: State officials noted that California’s laws treat the production or possession of AI-generated sexual images of minors as a felony offense.

The investigation remains ongoing as authorities examine the company’s role in the production of the prohibited content.