Govt terms X's response "inadequate'" seeks more details on Grok AI amid $20B funding and legal tussle
The move came after the Elon Musk-led social media platform made its submissions to the IT Ministry on the Centre's directive to crack down on the misuse of the artificial intelligence chatbot Grok for the creation of sexualised and obscene images of women.
The government has sought more details from X, including specific action taken on obscene content linked to its Grok AI and steps to prevent a repeat in future, sources said on Wednesday, adding that the response submitted by the firm, while detailed, was not adequate.
The move came after the Elon Musk-led social media platform made its submissions to the IT Ministry on the Centre's directive to crack down on the misuse of the artificial intelligence chatbot Grok for the creation of sexualised and obscene images of women. There were allegations that the tool had been used to generate and circulate non-consensual sexual content, with reports saying users were able to prompt Grok to generate outputs depicting minors in minimal clothing.
Sources told PTI that the IT Ministry has sought more details from X, including specific action taken on obscene content linked to Grok AI and steps to prevent it in future. This scrutiny coincides with X's confirmation on Wednesday that its AI arm, xAI, completed an upsized Series E funding round, raising $20 billion. The capital is set to support Grok 4 series and Grok Imagine, the tool capable of rapid image generation that is now at the centre of the controversy.
The response submitted by X earlier on Wednesday was "detailed, but not adequate", sources added.
X was given extended time until Wednesday, 5 PM, to submit an action taken report to the ministry, after a stern warning was issued to it over indecent and sexually-explicit content being generated through the misuse of AI-based services like Grok and other tools. MeitY had originally issued a notice on January 2 to an India-based official of X, seeking a report on remedial action within 72 hours, citing a failure in platform-level safeguards.
Sources said that X had provided a detailed reply, stating that it respects Indian laws and all guidelines, and that India is a big market for the platform. In its response, it also outlined the strict content take-down policies it abides by when it comes to misleading information and those related to non-consensual sexualised images.
However, the platform’s stance has previously been that AI tools are neutral. Musk had earlier argued that users who deliberately produce illegal material should face consequences, stating, “Anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content.”
The reply, while being detailed, missed crucial information, including specific steps that have been taken on the Grok AI obscene content issue, sources said.
The government’s firm stance is backed by recent legal precedents. The current standoff sits on top of a longstanding dispute where the Karnataka High Court, in a 2025 judgment, rejected X's challenge against the Sahyog portal, affirming the country’s ability to use administrative channels for urgent enforcement under the IT Rules.
Furthermore, the incident coincides with broader policy work, including a late 2025 working paper by the Department for Promotion of Industry and Internal Trade considering mandatory licensing for training AI systems on copyrighted content. Such rules could significantly change the economics of building models in India, adding pressure on X alongside the immediate regulatory demands.
(With inputs from PTI)