Canada says Elon Musk’s Grok violated its privacy laws

Canada says Elon Musk’s Grok violated its privacy laws

Canada says Elon Musk’s Grok violated its privacy laws

https://www.billionaires.africa/2026/06/12/canada-just-found-elon-musks-grok-guilty-of-violating-privacy-laws-over-sexualised-deepfake-images/

Publish Date: 2026-06-12 03:50:00

Source Domain: www.billionaires.africa

Canada’s privacy commissioner has found that xAI’s Grok, the artificial intelligence platform owned by Elon Musk, violated the country’s federal private sector privacy law by launching an image generation tool that allowed users to create and share sexualised deepfake images without the consent of the people depicted in them.

Privacy Commissioner Philippe Dufresne released the official report on Thursday, June 11, following a probe that began in January 2026. The investigation found that xAI had launched the Grok AI-powered image generation tool without implementing appropriate safeguards from the outset.

“xAI violated Canada’s federal private sector privacy law by launching the Grok AI-powered image generation tool without implementing appropriate safeguards from the outset,” Dufresne said at a press conference on Thursday.

Dufresne acknowledged, however, that his office does not have the authority to impose fines or order policy changes for xAI. The commissioner can make findings and recommendations but cannot compel the company to act or levy financial penalties under current Canadian law.

xAI has responded to the regulatory pressure by committing to regularly monitor the platform for sexualised deepfakes before an incident is reported, rather than only responding after complaints are filed. The company also rolled out changes before the report was released that would prevent Grok from allowing users to edit images of real people in revealing clothing.

The Canadian findings arrive on the eve of the SpaceX IPO on Friday, June 12, which is set to value Musk’s rocket company at $1.77 trillion and push his personal net worth past the $1 trillion mark, making him the world’s first confirmed trillionaire. The timing means one of the most commercially significant moments of Musk’s business career is accompanied by one of the most significant regulatory findings against his AI company.

The Canadian report is part of a sustained global pattern of regulatory action…

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