Canada’s Office of the Privacy Commissioner has found that xAI, the company behind Elon Musk’s AI chatbot Grok, violated federal privacy laws by launching an image generation feature that could create and share sexualized deepfake images of real people without consent. The findings follow a January investigation and were released in a report on June 11, 2026. Commissioner Philippe Dufresne stated that xAI failed to implement necessary safeguards from the start, a breach of Canada’s private sector privacy law. While the commissioner cannot impose fines, the report adds to mounting global pressure on the platform.

Regulators around the world have taken action against Grok over deepfake content. In March, a Dutch court ordered xAI to stop allowing nude image generation in the Netherlands. The UK’s Ofcom launched an investigation in January, and Spain opened a probe in February. In the US, a class-action lawsuit was filed by three teenage girls alleging the platform hosted child sexual abuse material. Indonesia and Malaysia have completely blocked Grok over the issue.

The Canadian report coincides with the release of a proposed digital safety bill that would ban social media use for children under 16 and establish a new digital regulator to set standards for AI tools. xAI has said it will now proactively monitor for sexualized deepfakes, not just respond after reports. The company is set to go public in the US on Friday, marking one of the largest IPOs in history.