The Office of the Privacy Commissioner of Canada:

An investigation by the Privacy Commissioner of Canada has found that Grok’s AI image-generation tool was launched without proper safeguards or sufficient consideration of potential privacy harms.

This lack of protections allowed users around the globe to create and share non-consensual, sexualized deepfakes, many targeting women and children.

In a report released today, Commissioner Philippe Dufresne found that X Corp. and xAI violated Canada’s federal private-sector privacy law.

According to the full report, while a privacy impact assessment was completed of the previous version of Grok’s image generation model, one was not done for Grok Imagine until March, well after its July 2025 launch. Even then, the assessment “did not accurately reflect […] risks to security, safety and privacy”.

Grok is now owned by SpaceX, which is going public tomorrow in extraordinary fashion. It is still generating abusive imagery.

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Kurt Wagner and Katie Roof, Bloomberg:

Elon Musk said his xAI artificial intelligence startup has acquired the X platform, which he also controls, at a valuation of $33 billion, marking a surprise twist for the social network formerly known as Twitter.

This feels like it has to be part of some kind of financial crime, right? Like, I am sure it is not; I am sure this is just a normal thing businesses do that only feels criminal, like how they move money around the world to avoid taxes.

Wagner and Roof:

The deal gives the new combined entity, called XAI Holdings, a value of more than $100 billion, not including the debt, according to a person familiar with the arrangement, who asked not to be identified because the terms weren’t public. Morgan Stanley was the sole banker on the deal, representing both sides, other people said.

For perspective, that is around about the current value of Lockheed Martin, Rio Tinto — one of the world’s largest mining businesses — and Starbucks. All of those companies make real products with real demand — unfortunately so, in the case of the first. xAI has exactly one external customer today. And it is not like unpleasant social media seems to be a booming business.

Kate Conger and Lauren Hirsch, New York Times:

This month, X continued to struggle to hit its revenue targets, according to an internal email seen by The New York Times. As of March 3, X had served $91 million of ads this year, the message said, well below its first-quarter target of $153 million.

This is including the spending of several large advertisers. For comparison, in the same quarter in the pre-Musk era, Twitter generated over a billion dollars in advertising revenue.

I am begging for Matt Levine to explain this to me.

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