According to engadget, the European Commission announced a formal investigation into Elon Musk’s X on January 26, 2026, specifically focusing on the platform’s failure to curb AI-generated sexually explicit deepfakes, including child sexual abuse material (CSAM), linked to its Grok AI. The probe will assess whether X took proper risk mitigation steps when deploying Grok, with regulators stating “these risks seem to have materialized.” This new inquiry comes shortly after the EU levied a 120 million euro (roughly $140 million) fine against X for breaching the Digital Services Act (DSA). In response to that fine, Musk called the EU “the fourth Reich” in a post on X and said it should be “abolished.” The Commission’s executive VP, Henna Virkkunen, stated the investigation will determine if X treated the rights of European citizens, especially women and children, as “collateral damage.”
The Core Accusation
Here’s the thing: this isn’t just a generic “bad content” probe. The EU is zeroing in on a specific, horrifying vector—AI-generated sexual imagery, particularly of children. They’re essentially accusing X of building a dangerous feature (Grok’s image generation) and then failing to build adequate guardrails, treating user safety as an afterthought. The language from the Commission is unusually stark, calling it a “violent, unacceptable form of degradation.” That’s a deliberate framing, meant to counter any potential “free speech absolutist” arguments from Musk’s camp. It frames the issue not as speech, but as digital violence. And they’re expanding an older 2023 investigation into X’s algorithms at the same time, which suggests they’re building a comprehensive case that the platform’s core design is flawed.
Musk’s Lose-Lose Game
So what’s Musk’s play here? His previous response—insulting the EU as a modern Nazi regime—probably isn’t a winning legal strategy. But it might be the only one he has. Complying fully with the DSA means implementing robust, proactive content moderation at a scale X has famously struggled with since he took over and gutted trust and safety teams. That costs money and clashes with his “town square” ideology. But fighting it means endless fines, legal battles, and potentially being forced to slow or halt Grok’s rollout in a major market. He’s painted himself into a corner. The platform’s spokesperson gave a boilerplate response to The New York Times about “zero tolerance,” but actions (or the lack thereof) speak louder. Can you really claim zero tolerance when the EU’s entire case is that you didn’t do enough to prevent the very thing you claim to not tolerate?
A Bigger Geopolitical Clash
Now, this is happening at a super sensitive time. The article notes Europe is already in the crosshairs of the Trump administration over tech scrutiny. By going after the most vocal, politically connected tech CEO in America, the EU is signaling it won’t back down, regardless of who’s in the White House or how big their megaphone is. This is the DSA’s first major test against a deliberately recalcitrant platform. If they win and force changes on X, it sets a powerful precedent for global platform governance. If they lose or the fines become just a cost of doing business for Musk, the entire regulatory framework looks weak. It’s a high-stakes game of chicken, and regular users, particularly victims of deepfake abuse, are caught in the middle.
What Happens Next
Basically, we’re in for a long, ugly fight. The investigation itself will take months. You can bet X will challenge every step legally. Meanwhile, the press release from the Commission is just the opening salvo. The “further enforcement steps” could mean even heavier fines, mandated changes to Grok, or operational restrictions in Europe. Musk’s strategy seems to be rallying his base against what he frames as oppressive bureaucrats. But that doesn’t hold up well when the accusation involves CSAM. It puts his most ardent defenders in a terrible position. In the end, this probe is less about one AI feature and more about a fundamental question: Can a platform owner who openly disdains regulation be forced to protect people from the worst harms his own tools enable? The EU is betting yes. Musk is betting he’s above the law. We’ll see who blinks first.
