DOJ Orders Crackdown on Birth Tourism After Supreme Court Upholds Birthright Citizenship 
Morgan Stanley Says China’s Reusable Rocket Progress Poses Long-Term Challenge to SpaceX 
Samsung to Launch First Yongin Chip Plant by 2029 as South Korea Speeds Up Semiconductor Hub 
Paramount-Warner Bros. Discovery Merger Faces Lawsuit From 12 States 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
SK Hynix Stock Soars as AI Memory Demand Outlook Fuels Chip Rally 
DOJ Subpoenas New York Times Journalists Over Air Force One Leak Report 
Alibaba Stock Jumps as China Approves Apple Intelligence Powered by Qwen AI 
US Judge Seeks Explanation for DOJ’s Decision to Drop Gautam Adani Bribery Case 
Apple Sues OpenAI, Former Employees Over Alleged Trade Secret Theft 
Elon Musk Says Anthropic Leads AI Race as Claude Models Challenge OpenAI 
DBS Targets S$1 Trillion Wealth AUM by 2030 Amid Asia Wealth Boom 
Samsung Chairman Lee Jae-yong Expected to Meet Nvidia CEO Jensen Huang on AI and Chip Partnership 
Rio Tinto Reports Strong Q2 Iron Ore Sales, Maintains 2026 Production Outlook 
Australia Sues Amazon Over Prime Video Ads and Subscription Terms 
Elon Musk’s artificial intelligence company xAI has filed a federal lawsuit against a South Carolina man accused of using its Grok chatbot to generate child sexual abuse material (CSAM) and non-consensual explicit deepfakes, marking one of the first known legal actions by an AI developer against a user over alleged misuse of generative AI.
The lawsuit, filed Tuesday in a federal court in Texas, alleges that Terry Harwood violated xAI’s terms of service by attempting to create sexually explicit AI-generated images involving both adults and minors. Harwood was arrested in February on separate charges related to the sexual exploitation of minors. His contact information was not immediately available, and xAI has not issued additional public comments on the case.
According to the complaint, Harwood uploaded non-sexual images into Grok and allegedly attempted to transform them into explicit AI-generated content without consent. xAI claims the activity included efforts to produce child sexual abuse material and sexually explicit deepfakes of adults.
The lawsuit comes as xAI faces growing international scrutiny over concerns that Grok and other generative AI tools can be exploited to create harmful or non-consensual synthetic media. The company said it actively monitors abuse and takes enforcement action against users who violate its policies.
Court filings state that xAI has suspended 52,222 user accounts and submitted 73,604 reports to the National Center for Missing & Exploited Children (NCMEC) in 2026. According to the lawsuit, those reports have contributed to at least 244 arrests.
xAI is seeking unspecified monetary damages and a permanent court injunction that would prohibit Harwood from accessing or using Grok in the future.
In its filing, the company argued that the defendant intentionally weaponized its AI platform for criminal purposes, causing serious harm to victims while exposing xAI to legal and reputational risks. The case could become a landmark legal test of how AI companies hold users accountable for the misuse of generative AI technologies.
