French prosecutors have opened an investigation into Elon Musk's alleged role in promoting the use of the AI tool Grok for creating sexual deepfakes. They argue that Musk, as the owner of social media platform X, may have intentionally staged the controversy surrounding the deeply offensive content produced by Grok to inflate the perceived value of X and its AI arm ahead of an anticipated IPO in June 2026. The prosecutors cited initial reports indicating that hundreds of women and teenage girls have reported having their images used without consent in false pornographic content generated by the AI chat tool.

The investigation started in early January 2026 amid growing concerns over the misuse of AI technologies, particularly in creating harmful and non-consensual media. The allegations are grave, considering the impact such deepfakes can have on the victims, including personal distress and potential reputational damage. The case has sparked a dialogue about accountability in AI development and the ethical implications of deploying such technologies without robust safeguards.

This controversy comes at a sensitive time as Musk's enterprises are preparing for significant developments, including a possible IPO. The prosecutors' statements suggest that the scandal may have been leveraged strategically to gain attention and possibly manipulate stock valuation. As the investigation unfolds, it could have wider implications for regulations surrounding AI usage and the responsibilities of tech leaders.