California Attorney General Issues Cease-and-Desist to xAI Over Grok Deepfakes

New Delhi, january 17, 2026: In a major escalation of the legal battle over artificial intelligence safety, California Attorney General Rob Bonta issued a formal cease-and-desist letter to Elon Musk’s AI startup, xAI, on Friday, January 16, 2026. The order demands that the company immediately halt the creation and distribution of nonconsensual sexually explicit deepfakes and child sexual abuse material (CSAM) generated by its chatbot, Grok.

A Growing Crisis of “Spicy Mode”

The legal action follows an “avalanche” of reports detailing how users have exploited Grok’s image-generation capabilities—specifically a feature marketed as “spicy mode”—to “undress” real women and children. According to investigations by the California Department of Justice, more than half of a sample of 20,000 images generated by the tool between late December 2025 and early January 2026 depicted individuals in minimal clothing or sexualized poses without their consent.

“The avalanche of reports detailing this material is shocking and, as my office has determined, potentially illegal,” Bonta said in a statement. “California has zero tolerance for the AI-based creation of child sexual abuse material and nonconsensual intimate images.”

Legal Pressure and New State Laws

The Attorney General’s move marks the first major test of AB 621, a California law that went into effect just two weeks ago. The statute creates strict legal liability for the creation and distribution of deepfake pornography and allows prosecutors to pursue companies that “recklessly aid and abet” the spread of such content.

Under the terms of the cease-and-desist, xAI has until January 20, 2026, to provide a formal confirmation that it has halted the problematic material and to outline the specific technical guardrails it is implementing. Failure to comply could lead to massive fines—up to $25,000 per violation—and potential criminal charges.

Global Backlash Against Grok

California is not alone in its pursuit. The crackdown on xAI has become a global phenomenon:

• Malaysia and Indonesia: Both nations have temporarily suspended access to Grok.
• United Kingdom: Regulators have opened a probe under the Online Safety Act, with potential fines reaching 10% of global revenue.
• Japan: Officials announced their own investigation on Friday, citing concerns over the chatbot’s failure to block inappropriate prompts.

xAI’s Response

While Elon Musk initially dismissed reports of illegal content as “legacy media lies,” xAI has begun to pivot under mounting pressure. The company recently restricted image-editing features to paid premium subscribers only, claiming this adds a layer of accountability. On Wednesday, the X Safety account stated it had implemented measures to prevent the editing of real people into “revealing clothes.”

However, Reuters tests conducted as recently as Friday morning showed that Grok still generates high-fidelity, sexualized imagery in private chats upon request.