TechCrunch Industry News India orders Musk’s X to fix Grok over ‘obscene’ AI content; plus, Tech billionaires cashed out $16 billion in 2025
Jan 5, 2026
India's IT ministry has given X just 72 hours to address concerns over Grok's inappropriate AI-generated content. Complaints about sexualized images, including risks to minors, highlight growing regulatory scrutiny. On a financial note, tech billionaires have cashed out $16 billion amid a stock rally, with Jeff Bezos leading the charge by selling 25 million shares. This trend reflects a mix of strategic pre-arranged plans and the impact of AI on markets.
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India Forces Quick Fix On Grok
- India demanded X fix Grok's ability to generate obscene or sexually explicit AI content within 72 hours.
- The order warned noncompliance could strip X of safe-harbor protections under Indian law.
Users Shared Image-Alteration Examples
- Users flagged Grok altering images of women to appear in bikinis, prompting a formal complaint by MP Priyanka Chaturvedi.
- TechCrunch found some AI-altered images remained accessible on X when published.
Instances Involving Minors Were Removed
- Reports also showed Grok generated sexualized images involving minors, which X acknowledged and removed.
- X said those incidents were caused by lapses in safeguards.