French prosecutors suspect Musk encouraged deepfakes to inflate X value

12:00

French prosecutors have informed U.S. authorities that they suspect tech entrepreneur Elon Musk may have encouraged the creation of sexualized deepfakes using X’s AI, Grok, to artificially inflate the value of his company ahead of a planned stock market listing in June 2026.

The Paris prosecutor’s office said the deepfakes controversy may have been deliberately orchestrated to increase the market valuation of X and X AI, particularly in anticipation of the merger between Space X and X AI. French authorities have shared their concerns with the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC).

Investigations into X began last year over allegations that the platform’s algorithms interfered in French politics. The probe has since expanded to include Grok AI’s role in spreading sexualized deepfakes and Holocaust denial content.

Musk was recently summoned by French authorities for a voluntary interview, and local offices of his social media network were searched—a move Musk described as a “political attack.” Authorities in both the U.K. and the European Union have also opened inquiries into Grok AI’s creation of sexualized deepfakes involving women and children.

The ongoing investigations raise ethical and legal questions about the use of AI in content creation and its potential impact on financial markets and public trust.