Elon Musk’s xAI Sues Grok User Accused of Creating Sexualised Deepfakes

Elon Musk’s artificial intelligence startup xAI has sued a South Carolina man arrested earlier this year on charges of sexually exploiting minors, alleging he misused the company’s AI system Grok to create child sexual abuse material.

In a lawsuit filed in a federal court in Texas on Tuesday, xAI alleged that Terry Harwood violated the company’s terms of service by using Grok to generate explicit and non-consensual sexual imagery. The case is among the first legal actions brought by an AI company against a user accused of abusing an AI system to create illegal content.

Harwood, who was arrested in February, was not immediately available for comment. Representatives for xAI also did not immediately respond to requests for comment.

The lawsuit comes amid growing global scrutiny of xAI over allegations that Grok has been used to create sexualised deepfakes — realistic-looking images and videos generated by artificial intelligence without a person’s consent.

In its complaint, xAI said it takes action against users who violate its rules through account suspensions, terminations and reports of suspected child sexual abuse material to the National Center for Missing & Exploited Children (NCMEC).

The company said it had suspended 52,222 accounts and filed 73,604 reports with NCMEC in 2026, leading to at least 244 arrests, according to the lawsuit.

xAI alleged that Harwood uploaded non-sexual images of adults and minors to Grok and attempted to use the system to create sexually explicit deepfakes based on those images. The company also claimed he generated non-consensual sexual imagery involving adults.

The lawsuit seeks an unspecified amount in monetary damages and a court order permanently preventing Harwood from accessing Grok.

“Defendant’s actions were a calculated scheme to weaponise Plaintiff’s tool for criminal ends, exposing real victims to profound and lasting harm, while exposing Plaintiff to significant legal risk and reputational damage,” xAI said in its filing.

 
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