French prosecutors have communicated serious concerns to American authorities regarding Elon Musk's activities, specifically examining whether he has encouraged the dissemination of sexualized deepfakes via X, the platform he owns. Prosecutors suggest that this practice may have aimed at artificially boosting the market value of his companies, including X and X AI, which are slated for a public listing in June 2026 following a merger with SpaceX.

According to the Paris public prosecutor's office, the investigation is linked to controversial content generated by the AI system known as Grok, which is alleged to have produced sexual deepfakes. Authorities speculate that the heightened publicity surrounding this contentious content might have been intentionally leveraged to enhance the stock market valuation of Musk's businesses in the lead-up to their planned IPO.

As part of the inquiry, French authorities have reached out to the U.S. Department of Justice for further cooperation, indicating the international implications of this investigation. Should the findings substantiate the allegations, this could have significant repercussions for Musk's ventures and might lead to intensified scrutiny of how AI technologies are being used in media and advertising.