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Prosecutors warn US Musk may have fuelled row to boost X
Cape Argus
|March 23, 2026
FRENCH prosecutors said at the weekend they had alerted US authorities to a suspicion that tech tycoon Elon Musk had encouraged controversy over sexualised deepfakes on X to “artificially” increase the value of his company.
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The social media network's Grok AI chatbot stirred outrage earlier this year over it generating images of naked women and girls without their consent.
“The controversy sparked by sexually explicit deepfakes generated by Grok (X’s AI) may have been deliberately generated in order to artificially boost the value of companies X and xAI," the Paris prosecutor's office said, confirming a report in Le Monde newspaper on Friday.
This could have been done towards “the planned June 2026 stock market listing of the new entity created by the merger” between SpaceX and xÁI, it added.
The prosecutor’s office said it had last week reached out to the US Department of Justice, as well as the US Securities and Exchange Commission (SEC), a financial market regulation body, to share its concerns.
Esta historia es de la edición March 23, 2026 de Cape Argus.
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