European Data Protection: Elon Musk's X Once Again Under Regulatory Scrutiny

Europe's data protection officers are seeking clarity on Elon Musk's decision to automatically use user data from his social media platform X for his AI start-up xAI. This brings fresh regulatory scrutiny to the platform. Users of X discovered on Friday that their posts and interactions with the Grok chatbot were being used without their explicit consent for the "training and fine-tuning" of xAI systems. This setting can currently only be changed through the desktop version of X, meaning mobile app users cannot opt out at the moment. The Irish Data Protection Commission, which monitors internet companies' compliance with EU data protection laws, stated that it has been in discussions with X for months regarding plans to use user data for AI systems. Questions about "transparency for users" were sent, and further inquiries were directed to X on Friday for clarification. Data protection experts question whether X might be violating the EU’s General Data Protection Regulation (GDPR), which requires obtaining individuals' consent for data collection and usage. Should an investigation be launched, X could face fines or penalties. Meta paused its plans to use Facebook and Instagram data for AI development in Europe last month at the request of the Irish DPC. This was termed "a setback for European innovation, competition in AI development," according to Meta. Musk, who acquired X in 2022 for $44 billion, is under increasing regulatory scrutiny worldwide. This follows personnel and moderation cuts and sudden product changes. The EU Commission is already investigating the company for alleged transparency and moderation issues related to the Digital Services Act. "All X users have the option to determine whether their public posts can be used to train Grok, the AI search assistant," stated X’s security account on Friday. "This option complements existing controls over whether your interactions, inputs, and results concerning Grok can be used. This setting is available on the web platform and will soon be available for mobile devices." X did not respond to a request for comment. The rollout comes as Musk seeks to gain an edge over competitors like OpenAI, Anthropic, and Google, whose most advanced models currently are "orders of magnitude" ahead of xAI, according to the billionaire. Access to X's vast repository of user data provides xAI a significant advantage. Grok is currently accessible to X-Premium subscribers. Musk's network of companies is increasingly interconnected. Engineers and other senior staff move between his enterprises, and the serial entrepreneur aims to get Tesla board approval for investments up to $5 billion in xAI. Some xAI investors cite the synergies with other Musk companies as a significant advantage, while others express concerns about potential conflicts of interest.