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California Attorney General Rob Bonta has opened a formal investigation into Elon Musk’s artificial intelligence company xAI, accusing it of enabling the creation and distribution of non-consensual sexual images through its Grok chatbot.

Bonta confirmed his office has sent a cease-and-desist letter to xAI demanding that the company immediately halt the generation of sexually explicit content involving women and minors.

“I fully expect xAI to immediately comply,” Bonta said in a statement announcing the action.

Deepfake Images Trigger State-Level Enforcement

The investigation centers on Grok, an AI chatbot developed by xAI, which has come under increasing criticism for allowing users to generate and share sexualized images without consent. According to California authorities, the conduct may violate state laws governing sexual exploitation, privacy, and consumer protection.

The attorney general’s office formally opened the probe on Wednesday, placing California among a growing number of governments scrutinizing generative AI tools that regulators say are outpacing existing safeguards.

Global Pressure Mounts on xAI

California’s move follows regulatory actions abroad. Authorities in Japan, Canada, and the United Kingdom have launched their own probes into Grok’s image-generation capabilities, while Malaysia and Indonesia have temporarily blocked access to the chatbot over similar concerns.

The widening international response underscores how rapidly AI-driven image tools have become a focal point for regulators struggling to contain deepfake abuse.

xAI Tightens Controls but Questions Remain

xAI said earlier this week that it had introduced new restrictions limiting image-editing functions across Grok. Regulators, however, remain unconvinced that the changes go far enough to prevent harm.

The company did not respond to a request for comment regarding California’s cease-and-desist letter, leaving open questions about whether it will comply or challenge the state’s demands.

A Test Case for AI Accountability

Legal experts say the investigation could become a bellwether for how U.S. states enforce accountability against AI companies whose tools generate harmful or illegal content.

As governments worldwide race to regulate artificial intelligence, California’s action signals that enforcement may move faster than federal legislation — and that AI developers could face escalating legal risk if safeguards fail.