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Elon Musk's AI startup xAI filed a lawsuit in the U.S. District Court for the Northern District of Texas on Tuesday against Terry Wayne Harwood, a South Carolina man arrested earlier this year on charges of sexually exploiting minors, alleging he misused the Grok chatbot to create child sexual abuse material.

Elon Musk's AI startup xAI filed a lawsuit in the U.S. District Court for the Northern District of Texas on Tuesday against Terry Wayne Harwood, a South Carolina man arrested earlier this year on charges of sexually exploiting minors, alleging he misused the Grok chatbot to create child sexual abuse material.

The lawsuit alleges Harwood opened multiple xAI accounts using false identities, uploading non-sexual images of adults and minors from Dec. 8, 2025, to Feb. 18, 2026, and used misleading prompts to circumvent Grok's built-in safeguards to generate explicit deepfakes.

The lawsuit alleges Harwood opened multiple xAI accounts using false identities, uploading non-sexual images of adults and minors from Dec. 8, 2025, to Feb. 18, 2026, and used misleading prompts to circumvent Grok's built-in safeguards to generate explicit deepfakes.

Harwood was charged with three counts of second-degree sexual exploitation of a minor and five counts of third-degree sexual exploitation of a minor following his arrest, which was announced by South Carolina's attorney general on March 9 as part of an Internet Crimes Against Children Task Force operation.

Harwood was charged with three counts of second-degree sexual exploitation of a minor and five counts of third-degree sexual exploitation of a minor following his arrest, which was announced by South Carolina's attorney general on March 9 as part of an Internet Crimes Against Children Task Force operation.

The case is among the first in which an AI company has sued one of its users for allegedly generating explicit content. xAI is seeking unspecified monetary damages and a permanent court order barring Harwood from using Grok, which has more than 2.6 million users.

The case is among the first in which an AI company has sued one of its users for allegedly generating explicit content. xAI is seeking unspecified monetary damages and a permanent court order barring Harwood from using Grok, which has more than 2.6 million users.

xAI's lawsuit states the company suspended 52,222 accounts and made 73,604 reports to the National Center for Missing & Exploited Children in 2026, resulting in at least 244 arrests. The suit also seeks reimbursement for legal expenses xAI may incur from actions filed by Harwood's victims.

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xAI's lawsuit states the company suspended 52,222 accounts and made 73,604 reports to the National Center for Missing & Exploited Children in 2026, resulting in at least 244 arrests. The suit also seeks reimbursement for legal expenses xAI may incur from actions filed by Harwood's victims.

The lawsuit follows global regulatory scrutiny of xAI over Grok's image-generation capabilities, including probes by California authorities, UK regulator Ofcom, the European Commission and Ireland's Data Protection Commission. The Internet Watch Foundation separately reported finding Grok-linked child sexual abuse imagery on dark web forums.

The lawsuit follows global regulatory scrutiny of xAI over Grok's image-generation capabilities, including probes by California authorities, UK regulator Ofcom, the European Commission and Ireland's Data Protection Commission. The Internet Watch Foundation separately reported finding Grok-linked child sexual abuse imagery on dark web forums.

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Musk’s xAI sues user who allegedly used Grok to create child sexual abuse material

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Musk’s xAI sues user who allegedly used Grok to create child sexual abuse material

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