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Why European Leaders Are Demanding Action Against Elon Musk’s AI Chatbot

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Tensions between Elon Musk’s xAI and European leaders are escalating after offensive comments were made by the company’s chatbot, Grok, on the social media platform X.

Why European Leaders Are Demanding Action Against Elon Musk’s AI Chatbot

Tensions between Elon Musk’s xAI and European leaders are escalating after offensive comments were made by the company’s chatbot, Grok, on the social media platform X. German politician Ralf Stegner called the antisemitic posts “unacceptable” and pushed for sanctions, according to Handelsblatt. In Poland, the government urged the European Union to investigate xAI and consider issuing fines after Grok made crude remarks about Polish politicians. The EU is already reviewing X under its Digital Services Act and is reportedly considering calculating penalties based on revenue from Musk’s other businesses, which could significantly raise the potential fine, according to Bloomberg.

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The situation could become more serious if the EU opens a separate investigation focused on Grok. xAI responded to the backlash by saying that it had started removing harmful posts and was working to stop hate speech before it appears on X. Thomas Regnier, a spokesperson for EU digital policy, said that platforms like X are required to monitor and manage risks from AI tools like Grok. In addition, Germany’s Johannes Schätzl called for the EU to move quickly on its investigation after accusing Musk of using Grok to spread extreme content.

At the same time, Poland’s Deputy Prime Minister, Krzysztof Gawkowski, said that if Grok’s hate speech continues, the EU should consider blocking access to X altogether. In Poland, Grok came under fire for insulting politicians’ looks and personal lives. Similar concerns surfaced in Turkey after Grok made controversial comments about President Erdogan. Turkey’s infrastructure minister warned that X could be banned unless steps are taken to control such content. Interestingly, it is worth noting that this wouldn’t be unprecedented, as Brazil briefly banned X last year.

What Is the Prediction for Tesla Stock?

When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $294.42 per share implies that shares are trading near fair value.

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