SpaceX reserved over $500M for litigation tied to xAI's Grok chatbot generating sexualized images, flagging it as a material risk ahead of its planned IPO.

SpaceX's IPO filing reveals xAI lost $6.4 billion in 2025 while planning a massive Grok expansion — offering the first public look at Elon Musk's AI financials and more details…

SpaceX listed the chance that Grok could generate "potential nonconsensual or exploitative imagery" as a risk factor in its pre-IPO paperwork.

The filing said 117 million use Grok’s AI features monthly but acknowledged the reputational risks posed by the chatbot’s “Spicy” Imagine Mode and “Unhinged” Voice Mode.

The rocket company has set aside more than $500 million for potential litigation losses, in part to account for complaints alleging Grok created sexualized images.

SpaceX reserved over $500M for litigation tied to xAI's Grok chatbot generating sexualized images, flagging it as a material risk ahead of its planned IPO.

Elon Musk's Grok has failed to convert its GSA OneGov agreement into federal-agency adoption, with downloads falling from 20m in January to 8.3m in April.

SpaceX's AI chatbot Grok faces significant challenges gaining traction within the U.S. government. Federal agencies show a strong preference for competitors like OpenAI and…

Perhaps the 420th unforced error from Musk in recent years.

IPO filing from Elon Musk’s company reveals look at finances, cosmic ambitions and insight into tech empire’s quirks

SpaceX IPO Filing Opens Up xAI Finances

Reuters found Grok appeared in just 3 of 400+ federal AI use cases, far behind OpenAI's 234, raising concerns ahead of SpaceX-xAI's potential record IPO.