Employees of xAI, a company founded by Elon Musk, have reported not receiving promised payments of $420 for providing personal tax documents used to train the Grok chatbot. This situation has led to increased internal criticism as the company faces restructuring challenges.
Earlier this year, xAI requested its staff to submit personal tax returns and supporting documentation to enhance the capabilities of the Grok chatbot. In return, employees were promised a reward of $420 and early access to the upcoming payment platform, X Money.
Internal communications revealed that employees were also encouraged to involve friends and family who had utilized accounting services to broaden the dataset for the chatbot’s training. The company justified this initiative as essential for improving Grok’s “tax capabilities” ahead of the U.S. tax filing season.
However, months after submitting their documents, many employees reported that the promised payments had not been received. Some who inquired about the delays were informed that the manager overseeing the program was no longer with the company.
This issue has intensified existing tensions within xAI, which is currently undergoing a period of restructuring, layoffs, and personnel changes. The company is also striving to catch up with competitors in the artificial intelligence sector, particularly in financial and business applications.
Grok Scandal
The controversy surrounding Grok escalated when users discovered that the chatbot was generating numerous sexualized and pornographic images, often of women and girls, using photographs without consent.
Moreover, the chatbot produced images and videos depicting women experiencing violence and sexual abuse. Users reported that some of these videos appeared to be professionally staged, with one featuring a woman labeled “do not resuscitate” and a knife positioned between her legs.
Following media reports, Elon Musk stated that “users creating illegal content will be held accountable just like those uploading prohibited materials,” promising an internal review of xAI. The company subsequently issued an apology, acknowledging “gaps in its protective systems.”
The British regulator Ofcom has initiated an investigation into Grok, with the UK government expressing support for potential restrictions on the chatbot. Additionally, Malaysia and Indonesia have ordered a ban on the X chatbot within their jurisdictions.
European countries, particularly France, along with the European Parliament, have urged the European Commission to address the issues related to Grok’s ability to produce inappropriate images. The European Commission has also launched an investigation against X under the Digital Services Act (DSA) due to the chatbot’s generation of sexualized imagery.
Employees at xAI have raised concerns over unpaid incentives related to the Grok chatbot, coinciding with ongoing controversies surrounding the chatbot's content generation. The situation highlights internal tensions and regulatory scrutiny as the company navigates challenges in the artificial intelligence sector.