xAI Grok

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Yet another co-founder departs Elon Musk’s xAI

Other recent high-profile xAI departures include general counsel Robert Keele, communications executives Dave Heinzinger and John Stoll, head of product engineering Haofei Wang, and CFO Mike Liberatore, who left for a role at OpenAI after just 102 days of what he called “120+ hour weeks.”

A different company

Wu leaves a company that is in a very different place than it was when he helped create it in 2023. His departure comes just days after CEO Elon Musk merged xAI with SpaceX, a move Musk says will allow for orbiting data centers and, eventually, “scaling to make a sentient sun to understand the Universe and extend the light of consciousness to the stars!” But some see the move as more of a financial engineering play, combining xAI’s nearly $1 billion a year in losses and SpaceX’s roughly $8 billion in annual profits into a single, more IPO-ready entity.

Musk previously rolled social media network X (formerly Twitter) into a unified entity with xAI back in March. At the time of the deal, X was valued at $33 billion, 25 percent less than Musk paid for the social network in 2022.

xAI has faced a fresh wave of criticism in recent months over Grok’s willingness to generate sexualized images of minors. That has led to an investigation by California’s attorney general and a police raid of the company’s Paris offices.

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EU launches formal investigation of xAI over Grok’s sexualized deepfakes

The European probe comes after UK media regulator Ofcom opened a formal investigation into Grok, while Malaysia and Indonesia have banned the chatbot altogether.

Following the backlash, xAI restricted the use of Grok to paying subscribers and said it has “implemented technological measures” to limit Grok from generating certain sexualized images.

Musk has also said “anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content.”

An EU official said that “with the harm that is exposed to individuals that are subject to these images, we have not been convinced so far by what mitigating measures the platform has taken to have that under control.”

The company, which acquired Musk’s social media site X last year, has designed its AI products to have fewer content “guardrails” than competitors such as OpenAI and Google. Musk called its Grok model “maximally truth-seeking.”

The commission fined X €120 million in December last year for breaching its regulations for transparency, providing insufficient access to data and the deceptive design of its blue ticks for verified accounts.

The fine was criticized by Musk and the US government, with the Trump administration claiming the EU was unfairly targeting American groups and infringing freedom of speech principles championed by the Maga movement.

X did not immediately reply to a request for comment.

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