California Builds AI Oversight Unit, Probes Musk's xAI

State AG Bonta says his office is investigating xAI over non-consensual sexual content generation

Published on Feb. 20, 2026

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California Attorney General Rob Bonta is building an artificial intelligence accountability program as his office probes Elon Musk's xAI over the generation of non-consensual sexually explicit images. Bonta said his office is seeking confirmation that the conduct has stopped and remains in discussions with the company, though xAI has deflected responsibility and still permits some sexualized content generation for paying subscribers.

Why it matters

California is embracing its role as an AI watchdog, despite industry and some Republican pushes for federal oversight. The state is beefing up in-house AI expertise to address issues like chatbots engaging in sexually explicit conversations with minors or encouraging self-harm.

The details

Bonta's office quickly sent a cease-and-desist letter to xAI last month as regulators globally investigated the company over sexualized content generated by its AI chatbot Grok. xAI, recently acquired by Musk's SpaceX, has said it has added measures to reject user requests for sexualized images of real people, but Bonta says the company still permits some such content for paying subscribers.

  • In January, xAI said it had added measures to reject user requests for sexualized images of real people.
  • Last month, the California Attorney General's office sent a cease-and-desist letter to xAI.

The players

Rob Bonta

The California Attorney General who is building an artificial intelligence accountability program and investigating Elon Musk's xAI.

xAI

An AI company recently acquired by Elon Musk's SpaceX that is being investigated by the California Attorney General's office over the generation of non-consensual sexually explicit images.

Elon Musk

The CEO of SpaceX, which recently acquired the AI company xAI that is under investigation.

William Tong

The Connecticut Attorney General who called AI and social media harm "the consumer protection fight of our time."

OpenAI

A San Francisco-based AI company that the California Attorney General's office has expressed an "ongoing interest" in after helping oversee its corporate restructuring last year.

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What they’re saying

“Just because you stop going forward doesn't mean you get a pass on what you did.”

— Rob Bonta, California Attorney General (Reuters)

“This affects all of our children.”

— William Tong, Connecticut Attorney General (Reuters)

“AI chatbots that have sexually explicit conversations with youth or tell them how to commit suicide are unacceptable.”

— Rob Bonta, California Attorney General (Reuters)

What’s next

The California Attorney General's office is seeking confirmation from xAI that the conduct has stopped and remains in discussions with the company.

The takeaway

California is taking a proactive stance as an AI watchdog, building in-house expertise and investigating companies like xAI over issues like the generation of non-consensual sexual content, in contrast to industry and some Republican pushes for federal oversight.