One of Europe's most powerful privacy regulator just put Elon Musk's X on notice for issues pertaining to its Grok AI. A potential fine worth billions of dollars in revenue now hangs over the platform's head.

Ireland's Data Protection Commission launched a large-scale formal investigation into X Internet Unlimited Company on Monday, February 17, targeting the platform's Grok artificial intelligence chatbot over its generation of nonconsensual sexually explicit deepfake images, including images involving children.

The inquiry concerns the apparent creation and publication on the X platform of potentially harmful, nonconsensual intimate and sexualized images containing or involving the pro...