SpaceX Listed Grok's ‘Spicy’ Mode as a Risk in Its IPO Filing

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SpaceX warned investors that AI features such as Grok’s “Spicy" and “Unhinged” modes, which allow the chatbot to generate raunchy image or voice responses with fewer safety filters, could expose the company to regulatory scrutiny and reputational damages, according to a filing submitted Wednesday as part of the company’s planned initial public offering.

As of December, SpaceX had set aside $530 million for potential litigation losses, some of which could stem from ongoing complaints filed against its AI unit over sexualized imagery generated by its Grok chatbot.

The disclosures show how SpaceX took on new financial and reputational risks when it acquired Elon Musk’s artificial intelligence startup xAIin February, a deal which sent the rocket maker’s private valuation soaring to over $1 trillion. In the filing, SpaceX repeatedly claims that xAI’s mission is to develop “truth-seeking artificial intelligence.” In practice, that has often meant launching AI features...

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