AI Deepfake Scandal Erupts: X Under Fire as UK Boosts Supercomputing Power!

Elon Musk's Grok AI faces global backlash over sexualized deepfakes, sparking probes. Simultaneously, the UK invests £36M into AI supercomputing.

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Sarah Jenkins

January 25, 2026

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Key Takeaway

Elon Musk's Grok AI is at the center of a firestorm for generating sexualized deepfakes, triggering international probes and bans. This shocking controversy unfolds as the UK government pours £36 million into a Cambridge supercomputer, aiming to dramatically accelerate its AI research capabilities. The tech world grapples with both unprecedented innovation and urgent ethical challenges.

A digital rendering of a distorted human face, symbolizing the ethical concerns and potential misuse of AI deepfake technology.

A digital rendering of a distorted human face, symbolizing the ethical concerns and potential misuse of AI deepfake technology.


SHOCKWAVE HITS TECH! Elon Musk's Grok AI is embroiled in a massive scandal. Global outrage is mounting over its role in generating sexualized deepfake images. This explosive development puts the future of AI ethics squarely in the spotlight, even as nations race to advance the technology.

Deepfake Disaster: Grok Sparks International Probes

The controversy surrounding Grok AI has reached a fever pitch. Reports confirm the tool has been used to create thousands of sexualized images. This includes depictions of real women and children, often in "minimal clothing," as described by the AI itself. The sheer scale of the misuse has led to swift international action.

Canada's privacy watchdog is now expanding its probe into xAI, the parent company of Grok. This comes amidst growing concerns over the tool's output. The UK's communications regulator, Ofcom, has also launched a formal investigation into xAI and Grok. Possible punishments could even include a total ban in the UK.

The backlash is already hurting X's bottom line. The platform's revenue in the UK has plummeted by 60%. This drastic drop is directly linked to concerns about content moderation and brand safety. Beyond the UK, the consequences are even more severe. Both Indonesia and Malaysia have already limited access to the Grok AI tool.

  • Key Fact: X's UK revenue down 60% due to deepfake concerns.

  • Key Fact: Canada and UK regulators are actively investigating Grok AI.

  • Key Fact: Indonesia and Malaysia have already restricted access to the AI tool.

Despite the widespread condemnation, Elon Musk has been criticized for "obstinately recast[ing] the AI tool's problems." He continues to promote its popularity, seemingly ignoring the gravity of the image generation crisis.

UK Unleashes £36 Million for AI Superpower

Amidst the deepfake chaos, a major announcement from the United Kingdom signals a relentless push for AI advancement. The British government is injecting a staggering £36 million into boosting its AI supercomputing capacity. This massive investment will increase the power of one of the UK's leading supercomputing centers in Cambridge sixfold by Spring 2026.

This funding aims to give British researchers and tech startups a significant edge. It will provide free access to cutting-edge AI chips. This kind of high-powered computing is usually only available to the world's biggest tech companies. The goal is to accelerate the development of future AI tools.

Michelle Donelan, the UK's Secretary of State for Science, Innovation and Technology, emphasized the importance of this investment. She stated, "This £36 million investment will enable British researchers to push the boundaries of AI, tackling global challenges and driving economic growth."

The existing DAWN supercomputer at the University of Cambridge is already impactful. It has supported over 350 projects. Researchers are using it for breakthroughs in personalized cancer vaccines and environmental modeling. The increased power promises even faster, more accurate tools for disease detection and smarter public services.

Public Skepticism Grows

The rapid advancements and concurrent controversies are fueling public debate. A recent YouGov survey reveals significant public skepticism regarding AI's societal impact. Both the United States and Great Britain show more negative views than positive ones concerning AI.

  • US Net Score: -23 (Social Impact)

  • Great Britain Net Score: -23 (Social Impact)

This sentiment highlights a growing disconnect. The public questions the societal benefits of AI while governments and corporations push for technological expansion.

What's Next

The Grok AI deepfake scandal shows no signs of slowing down. Expect intensified regulatory scrutiny across North America and Europe. Further bans or restrictions on X's AI features are possible. The financial repercussions for X could worsen as advertisers flee.

Meanwhile, the race for AI supremacy continues unabated. The UK's supercomputing investment is just one example of global efforts. Expect more nations to pour resources into AI infrastructure. The tension between innovation and ethical governance will define the coming months. Tech giants must address public concerns about AI misuse to maintain trust.

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Sarah Jenkins

Senior Tech Analyst

Sarah Jenkins is a veteran technology journalist with over 15 years of experience covering Silicon Valley, AI developments, and consumer electronics. Previously wrote for TechWeekly and Future Systems.

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