AI Risk Wire

Cases › produced harmful content › LR-2026-0646

Tennessee girls sue Grok and Stability AI over explicit AI deepfakes

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: no action reported

Severity major
Reported 27 Jul 2026
Developer and model xAI · Grok

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

Severity major: Test: many third parties with a stated count of two or more. Fact: five child plaintiffs are named in the amended complaint. The severity is alleged, not established.

A federal class action was filed against xAI, which develops Grok, and Stability AI, alleging that their AI tools enabled the creation of AI-generated child sexual abuse material from photographs of children. The amended complaint was filed on behalf of five anonymous child plaintiffs, three of them from Tennessee. The lawsuit alleges the children’s photographs were used to create such material without their knowledge or consent, and that the companies failed to implement safeguards that could have prevented the alleged misuse. It specifically references Grok’s optional Spicy Mode. Both companies deny the allegations and the case remains pending. xAI has since stated it implemented technological measures restricting the editing of images of real people in revealing clothing and limited image creation to paid subscribers. Plaintiffs also bring claims under Tennessee’s 2025 law on AI-generated child sexual abuse material.

What happened

1 · What it was doingThe system was alleged to have been used to turn photographs of children into AI-generated child sexual abuse material.

What was done

No source states an action or fix.

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

Not yet read for controls. Controls that mitigate the primary risk:

Model

Safety training and refusal · Content safety classifiers · Abuse monitoring and account enforcement · Outside red-teaming

Application

Output filtering and redaction

Similar incidents

All cases of this kind ›

Evidence

No source states: what went wrong, what it reached or did, how it was caught, 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, the cause, what set it off, what was done.

Show the full account: 2 items from the primary sources

What happened, in order

  1. 2025 Tennessee enacted legislation creating criminal penalties related to technology designed to create AI-generated child sexual abuse material.

Not dated in the sources:

  • Amended federal class action complaint filed on behalf of five anonymous child plaintiffs.
Show every field, with its source and grade

The AI system

Model
Grok
C one secondary source states it
Developer
xAI
C one secondary source states it

What happened

Earliest source we hold
2026-07-27
D inferred by us from the described behaviour, reason shown
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

Impact

Severity
major
D inferred by us from the described behaviour, reason shown
Kind of harm
privacy
C one secondary source states it
Who was affected
Five anonymous child plaintiffs, including three from Tennessee
C one secondary source states it
Why this severity
Test: many third parties with a stated count of two or more. Fact: five child plaintiffs are named in the amended complaint. The severity is alleged, not established.
D inferred by us from the described behaviour, reason shown

Notes on gaps

All harm is alleged in a lawsuit; both companies deny the allegations and the case is pending. Stability AI's specific model is not named. The C5 link reflects an allegation that screening was missing, not a finding. Filtering prompts and the Acceptable Use Policy are not mapped to controls in the list.

LR-2026-0646 · version 1 · published 2026-11-01 after automatic checks; not yet checked field by field by a person · JSON