The European Commission has opened a formal investigation into X (formerly Twitter) under the Digital Services Act following revelations that its Grok AI could generate sexually explicit deepfakes, including images of children.
The European Commission has initiated formal proceedings against Elon Musk's X platform under the EU's Digital Services Act (DSA) after discovering that its artificial intelligence system Grok could generate sexually explicit deepfake imagery. This includes the ability to create non-consensual intimate images of real individuals and depictions that constitute simulated child sexual abuse material.
The investigation, announced on January 26, 2026, centers on whether X conducted adequate risk assessments before integrating Grok's image-generation features across the EU. Under the DSA—which became fully applicable in 2024—platforms must implement systemic mitigations against illegal content dissemination, including manipulated sexual imagery and child exploitation material. The regulation empowers authorities to impose fines of up to 6% of a company's global annual revenue for violations.
Commission Executive Vice-President Henna Virkkunen stated: "Sexual deepfakes of women and children are a violent, unacceptable form of degradation. This investigation will determine whether X treated the rights of European citizens as collateral damage." Internal Commission documents indicate Grok's capabilities exposed EU users to "serious harm," with particular concern about tools that could generate degrading imagery without consent.
X responded by referencing its existing content policies: "We remain committed to making X a safe platform with zero tolerance for child sexual exploitation, non-consensual nudity, and unwanted sexual content. We remove violative material and report offenders to law enforcement." Following early discussions with regulators, X disabled Grok's image-generation feature for non-paying users—a measure the Commission acknowledged but deemed insufficient given the systemic risks.
The probe extends beyond this incident to examine X's overall compliance with DSA obligations. This includes an ongoing investigation launched in December 2023 regarding systemic risks, now expanded to assess how X's shift to Grok-based content recommendations impacts user safety. Notably, the platform already faces €120 million in DSA fines for previous violations involving advertising transparency and researcher data access.
Financial exposure remains significant: based on estimated annual revenue of $2.9 billion, potential penalties could reach $174 million. The investigation coincides with heightened EU-US regulatory tensions, following 2025 objections from the US Trade Representative about EU policies targeting American tech firms.
National regulators in Malaysia and Indonesia have already blocked X over deepfake concerns, while UK watchdog Ofcom maintains active monitoring despite X's partial disabling of Grok features. The Commission's final determination will set crucial precedents for AI deployment governance under the DSA framework.
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