xAI Sues User Over Alleged Misuse of AI Tool to Create Explicit Deepfakes

Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit against a South Carolina man accused of using its AI platform, Grok, to create sexually explicit deepfake images involving minors.

The lawsuit, filed in a Texas federal court, alleges that Terry Harwood violated xAI’s terms of service by creating multiple accounts under false identities and attempting to bypass the platform’s safety protections.

According to the complaint, Harwood uploaded non-sexual images of adults and minors and repeatedly used prompts intended to turn them into explicit content.

xAI said Grok refused many of the requests because they breached its content policies, but Harwood allegedly continued altering his prompts in an effort to evade the system’s safeguards.

The company is seeking financial damages and a court order that would permanently ban Harwood from using its services.

Harwood was arrested earlier this year on charges linked to the sexual exploitation of minors.

xAI said it actively enforces its safety policies through account suspensions, terminations and reports to child protection authorities.

The company added that it has suspended more than 52,000 accounts and filed over 73,000 reports of suspected child exploitation material, contributing to nearly 250 arrests in 2026.

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