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.

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.

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 IPO filing pitches orbital data centers as Grok lags rival AI services.