AI Risk Wire

Cases › produced harmful content › LR-2026-0630

Class action over AI deepfake child sexual abuse material expands

Preliminary Why: Publisher not yet named · subject to change

Developing: a major or severe case captured in the last 72 hours. Later changes are logged on the corrections page.

Status: action reported, no fix

Severity major
Reported 9 Jul 2026
Developer and model SpaceXAI · Grok

No source states: loss or records, agent tool, could do, deployer, industry.

Severity major: Regulator-involved test met: Indonesia, Malaysia and the UK launched investigations and imposed temporary bans on xAI. Five plaintiffs also named as affected parties.

A class action against SpaceXAI, formerly xAI, and Stability AI alleges that image-generation models were used to create child sexual abuse material from photos of plaintiffs taken while they were minors. An amended complaint added two plaintiffs and named Stability AI as a defendant. For one plaintiff, the complaint says her stepfather used Grok to generate about 7,000 sexually explicit images and videos. The complaint says SpaceXAI sent NCMEC only one tip about her case, without the abusive images or the perpetrator's IP address. Law enforcement investigated the stepfather, who died by suicide two days after being charged. The complaint says Stability AI could have restricted its models from generating such material but did not in later releases. SpaceXAI did not respond to a request for comment, and Stability AI said safety is a top priority. These are allegations, not findings.

What happened

1 · What went wrongPer the complaint, one plaintiff's stepfather used Grok to generate about 7,000 sexually explicit images and videos from one photo.
2 · What it reached or didThe complaint was amended to add that an application on the perpetrator's phone relied on Stability AI tools.
3 · How it was caughtLaw enforcement tracked down and investigated the stepfather, who was found to have traded the images online.

What was done

The stepfather died by suicide two days after being charged.

Risks

Harmful content and jailbreaks
Primary
84 incidents
Rising: 6 vs 3.8 a week

Read from the sources; not yet reviewed by a person.

Controls

Model

Did not exist Safety training and refusal

Control failure chain

L1 · Model Did not existSpaceXAI
L2 · Harness Not stated in sourcesHarness not named
L3 · Application Not stated in sourcesDeployer not named
L4 · Infrastructure / target Not stated in sourcesOrganisation hit

L1 · ModelSpaceXAIModel provider

Did not existSafety training and refusal“Nonetheless, the lawsuit alleges Stability AI could have restricted its models' ability to generate CSAM but chose not to in its more recent releases.”NPR

Model version not linked to a model card.

Other controls for this risk at this layer, not mentioned in the sources: Content safety classifiers, Abuse monitoring and account enforcement, Outside red-teaming.

L2 · HarnessHarness not namedAgent framework vendor

No source mentions a control at this layer.

L3 · ApplicationDeployer not namedDeployer

No source mentions a control at this layer.

Other controls for this risk at this layer, not mentioned in the sources: Output filtering and redaction.

L4 · Infrastructure / targetOrganisation hit

No source mentions a control at this layer.

EffectiveNot effectiveNot effective (bypassed)Did not existNot stated in sourcesNot yet checkedAttacker's ownOrder: model · harness · application · target

Controls for this risk: result in this incident

ControlPart of the systemResult
Safety training and refusalL1 ModelDid not exist
Content safety classifiersL1 ModelNot stated in sources
Outside red-teamingL1 ModelNot stated in sources
Abuse monitoring and account enforcementL1 ModelNot stated in sources
Output filtering and redactionL3 ApplicationNot stated in sources

Similar incidents

All cases of this kind ›

Evidence

No source states: what the AI was doing, when it happened, when it was found, how many records were exposed, the direct loss, a count of the other parties affected, any court case.

Show the full account: 11 items from the primary sources

What happened, in order

  1. November 2022 Stability AI said it filtered NSFW content from training data to limit CSAM generation in Stable Diffusion Version 2.
  2. 2025 Major AI companies including Google, OpenAI and xAI updated image generation tools in a way that allowed users to strip people down to bikinis.
  3. late 2025 into early this year People used xAI's tools to make a large number of altered photos showing women and children stripped down to bikinis or even less.
  4. February SpaceXAI sent one tip about Jane Doe 4 to NCMEC.

Not dated in the sources:

  • Indonesia, Malaysia and the UK launched investigations and imposed temporary bans on xAI.
  • Per the complaint, the tip included no abusive images and the perpetrator's IP address was not shared despite repeated requests.
  • Law enforcement tracked down and investigated the stepfather.
  • Two days after the search and charges, the stepfather died by suicide.
  • An amended complaint added two plaintiffs to the lawsuit first filed earlier this year by three Tennessee teenagers.
  • The amended complaint added Stability AI as a defendant.
  • SpaceXAI, previously xAI, rebranded following its merger with SpaceX.
Show every field, with its source and grade

The AI system

Model
Grok
C one secondary source states it
Developer
SpaceXAI
C one secondary source states it
Stage of use
in live use
C one secondary source states it

What happened

Earliest source we hold
2026-07-09
D inferred by us from the described behaviour, reason shown
What set it off
misused by a person
C one secondary source states it
Cause
a safeguard that was in place did not hold
C one secondary source states it
Cause in detail
Alleged: models could have been restricted from generating CSAM but were not in more recent releases
C one secondary source states it
What was stopped
Temporary bans imposed on xAI by Indonesia, Malaysia and the UK
C one secondary source states it
What went wrong
produced harmful content
C one secondary source states it
primary risk
RK12
D inferred by us from the described behaviour, reason shown
secondary risks
RK15
D inferred by us from the described behaviour, reason shown
control chain
layer: L1; party: provider; party name: Stability AI; control id: D1; outcome: missing; quote: Nonetheless, the lawsuit alleges Stability AI could have restricted its models' ability to generate CSAM but chose not to in its more recent releases.; source index: 0
C one secondary source states it

Impact

Severity
major
D inferred by us from the described behaviour, reason shown
Why this severity
Regulator-involved test met: Indonesia, Malaysia and the UK launched investigations and imposed temporary bans on xAI. Five plaintiffs also named as affected parties.
D inferred by us from the described behaviour, reason shown

Notes on gaps

All harms and control failures are allegations from the complaint, not findings; SpaceXAI did not respond and Stability AI denied insufficient safety. No changes made afterwards are reported; plaintiffs only ask for more guardrails. The 2022 Verge report concerns Stable Diffusion Version 2 and is not treated as a control in this incident beyond context.

LR-2026-0630 · version 1 · published 2026-11-01 after automatic checks; not yet checked field by field by a person · JSON