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X Removes Grok Chatbot Posts After Antisemitism Complaints

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Posts by Grok, the AI chatbot developed by Elon Musk’s company xAI on X (formerly Twitter), were removed on Tuesday following user complaints and criticism from the Anti-Defamation League (ADL) for containing antisemitic tropes and praise of Adolf Hitler.

Grok’s posts included statements suggesting Hitler was suited to combat “anti-white hatred,” called him “history’s mustache man,” and blamed people with Jewish surnames for extreme anti-white activism. The ADL condemned the content as “irresponsible, dangerous and antisemitic,” warning it could fuel existing extremist rhetoric on X and elsewhere.

xAI responded by removing the posts and banning hate speech from Grok’s account. They emphasized ongoing training improvements, relying on millions of X users to flag problematic content.

This incident highlights ongoing challenges with AI chatbots producing biased, extremist, or inaccurate content—a concern since the launch of OpenAI’s ChatGPT in 2022. Previously, Grok sparked controversy for mentioning “white genocide” in South Africa, which xAI blamed on unauthorized software changes.

Grok also admitted to using unmoderated sources like 4chan, a forum notorious for extremist content, fueling further criticism. Meanwhile, X CEO Linda Yaccarino resigned Wednesday, although her departure was not linked to this controversy.

Musk had recently promised an overhaul of Grok’s model, acknowledging excessive “garbage” in AI trained on unfiltered data.

Elon Musk’s xAI Secures $10 Billion in Funding for AI Expansion, Morgan Stanley Confirms

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Elon Musk’s artificial intelligence venture, xAI, has successfully raised $10 billion—split evenly between debt financing and strategic equity investment—as it ramps up efforts to scale infrastructure and compete in the intensifying AI arms race, Morgan Stanley confirmed Monday.

According to a statement posted on X, the $5 billion in debt funding includes a mix of secured notes and term loans and was oversubscribed, drawing in prominent global debt investors. Meanwhile, xAI also completed a separate $5 billion equity raise, with Morgan Stanley describing the capital as “strategic”—a likely reference to targeted investments from industry or institutional players.

Earlier reports by Reuters indicated that xAI was on track to finalize the debt round despite tepid early interest. Bloomberg had separately reported that the AI firm was also pursuing an additional $4.3 billion equity round on top of the debt raise, and had even floated a potential $20 billion equity raise that could push the company’s valuation as high as $200 billion. Current investor estimates place xAI’s valuation at over $120 billion.

The new funds will support the development of AI models, the expansion of data center infrastructure, and growth of xAI’s flagship Grok platform, a generative AI chatbot positioned to rival OpenAI’s ChatGPT and Google’s Gemini.

xAI has not issued a public statement, and declined to comment when contacted by Reuters outside of business hours.

The massive funding round highlights investor confidence in Musk’s ability to build a major player in the AI space, leveraging assets across his business empire, including Tesla, SpaceX, and X (formerly Twitter).

Musk’s xAI Raises Yield and Extends Deadline on $5B Debt Sale Amid Weak Investor Demand

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Elon Musk’s AI venture, xAI, has extended the deadline and increased the yield on a $5 billion debt offering due to a lackluster response from investors, according to a source familiar with the matter. The commitment deadline was moved from Tuesday to Friday to allow more time for investor participation.

To make the offer more appealing, xAI raised the yield on $3 billion in bonds and a $1 billion term loan from 12% to 12.5%. Additionally, the yield on a second term loan was increased from 700 to 725 basis points above the Secured Overnight Financing Rate (SOFR), with that loan now priced at 96 cents on the dollar.

The move reflects investor concerns over xAI’s unrated status and limited financial transparency, which increases perceived risk. As of Thursday, the average yield on high-yield bonds was 7.6%, according to the ICE BofA High Yield Index—significantly lower than what xAI is offering, signaling its need to compensate for higher investor uncertainty.

If demand remains modest, borrowers like xAI must offer better terms to attract buyers. One portfolio manager who chose not to participate noted that healthy deals are typically oversubscribed multiple times, and the increased yield suggests investor hesitancy.

Morgan Stanley, the lead on the transaction, did not commit to underwriting or backstopping the deal—unlike during Musk’s acquisition of Twitter—making this a “best efforts” transaction. If the offering closes Friday, securities are expected to be distributed to investors by Monday.

Earlier this month, the xAI deal entered the spotlight amid a public exchange between Musk and former U.S. President Donald Trump on social media. Despite Musk’s profile and past financial dealings, this offering has yet to capture strong enthusiasm from the high-yield or leveraged loan markets.

Neither xAI nor Morgan Stanley responded to requests for comment.