{"id":224361,"date":"2026-01-06T23:46:07","date_gmt":"2026-01-06T23:46:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/224361\/"},"modified":"2026-01-06T23:46:07","modified_gmt":"2026-01-06T23:46:07","slug":"elon-musks-xai-announces-it-has-raised-20bn-amid-backlash-over-grok-deepfakes-technology","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/224361\/","title":{"rendered":"Elon Musk\u2019s xAI announces it has raised $20bn amid backlash over Grok deepfakes | Technology"},"content":{"rendered":"<p class=\"dcr-130mj7b\">Elon Musk\u2019s artificial intelligence company has raised $20bn in its latest funding round, the startup announced Tuesday, even as its marquee chatbot Grok faces backlash over generating sexualized, nonconsensual images of women and underage girls.<\/p>\n<p class=\"dcr-130mj7b\">xAI\u2019s Series E funding round featured big name investors, including Nvidia, Fidelity Management and Resource Company, Qatar\u2019s sovereign wealth fund, and Valor Equity Partners \u2013 the private investment firm of Musk\u2019s longtime friend and former Doge member <a href=\"https:\/\/www.theguardian.com\/technology\/ng-interactive\/2025\/aug\/28\/elon-musk-antonio-gracias-mdma-psychedelics-company\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Antonio Gracias<\/a>. The funding round exceeded its initial $15bn target, according to xAI\u2019s press release. The company touted Grok\u2019s image generation abilities in the announcement of its latest funding round<\/p>\n<p class=\"dcr-130mj7b\">xAI lacks the prominence of its rival OpenAI, the maker of ChatGPT, and has <a href=\"https:\/\/www.theguardian.com\/technology\/2025\/nov\/03\/grokipedia-academics-assess-elon-musk-ai-powered-encyclopedia\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">continually drawn criticism<\/a> for generating misinformation, antisemitic content and now potentially illegal sexual material. Nonetheless, the company has been able to win government contracts and billions of dollars in investment amid the AI boom. xAI\u2019s latest funding round comes during some of the fiercest pushback against the company yet, with lawmakers in multiple countries demanding answers regarding Grok\u2019s output.<\/p>\n<p class=\"dcr-130mj7b\">Over the past week, Grok has responded to tens of thousands of prompts from users on <a href=\"https:\/\/www.theguardian.com\/technology\/twitter\" data-link-name=\"in body link\" data-component=\"auto-linked-tag\" rel=\"nofollow noopener\" target=\"_blank\">X<\/a> requesting the chatbot remove women\u2019s clothing in images or pose them in sexualized ways. Many of the prompts have included images of women who have not given their consent to be digitally undressed, including Ashley St Clair, the estranged mother of one of Musk\u2019s children.<\/p>\n<p class=\"dcr-130mj7b\">\u201cI felt horrified, I felt violated, especially seeing my toddler\u2019s backpack in the back of it,\u201d St Clair told the Guardian, adding that her complaints to X did not go anywhere. The Guardian\u2019s request for comment from xAI resulted in an automated response stating \u201cLegacy Media Lies\u201d.<\/p>\n<p class=\"dcr-130mj7b\">Some of Grok\u2019s images included a photo of a 12-year-old girl, which the chatbot manipulated to remove the child\u2019s actual clothing and depict her instead in a bikini. Other suggestive images have featured children as young as 10 years old. The chatbot posted an apology on Friday that stated lapses in its safeguards led to generating images of minors, but <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/jan\/02\/elon-musk-grok-ai-children-photos\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">continued to generate sexualized images of children<\/a> in the ensuing days.<\/p>\n<p class=\"dcr-130mj7b\">xAI has been seeking investment for months as it works to increase its AI models\u2019 capabilities and build out <a href=\"https:\/\/www.theguardian.com\/us-news\/2025\/jul\/03\/elon-musk-xai-pollution-memphis\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">enormous data centers<\/a> in Memphis, Tennessee. The company claimed the new funding would help its core mission of \u201cUnderstanding the Universe\u201d.<\/p>\n<p class=\"dcr-130mj7b\">French ministers reported <a href=\"https:\/\/www.reuters.com\/technology\/french-ministers-report-groks-sex-related-content-x-platform-prosecutors-2026-01-02\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Grok\u2019s output to prosecutors<\/a> on Friday and referred the episode to media regulators to decide whether the images violate the European Union\u2019s Digital Services Act. Liz Kendall, the UK\u2019s technology secretary, also <a href=\"https:\/\/www.theguardian.com\/technology\/2026\/jan\/06\/grok-ai-fake-images-women-girls-undressed-uk-minister-liz-kendall\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">condemned Grok\u2019s deepfakes on Tuesday<\/a> as \u201cappalling and unacceptable\u201d, calling on the British regulator Ofcom to take action. Ofcom posted on X that it had made contact with xAI to determine whether an investigation is warranted. Lawmakers in the US, where xAI is headquartered, have remained comparatively mum.<\/p>\n<p class=\"dcr-130mj7b\">The company made a similar funding announcement in July of last year during another controversy over Grok. A week after the chatbot began posting antisemitic content and pro-Nazi ideology, including describing itself as \u201cMechaHitler\u201d, xAI announced it had secured a contract with the US Pentagon worth nearly $200m.<\/p>\n","protected":false},"excerpt":{"rendered":"Elon Musk\u2019s artificial intelligence company has raised $20bn in its latest funding round, the startup announced Tuesday, even&hellip;\n","protected":false},"author":2,"featured_media":224362,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":{"0":"post-224361","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-il","12":"tag-israel","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/224361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=224361"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/224361\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/224362"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=224361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=224361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=224361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}