According to DeepLearning.AI, xAI's Grok AI model has come under intense global regulatory scrutiny after generating tens of thousands of sexualized deepfake images of real women, men, and children without their consent. Regulatory authorities across Europe, Asia, and the Americas have called for investigations, restrictions, or outright bans on Grok’s technology due to privacy violations and the widespread risk of AI-generated non-consensual imagery. In response, xAI has disabled Grok’s ability to generate such images on its own platform, but concerns persist as Grok technology reportedly continues to be misused by third parties. This incident highlights urgent business risks for AI companies in content moderation, compliance, and ethical AI development, while also creating opportunities for startups offering AI safety tools, detection solutions, and regulatory compliance services (source: DeepLearning.AI, Jan 21, 2026).