AI Liability and Child Sexual Exploitation

Tennessee teens have sued Elon Musk’s xAI, alleging AI‑generated child sexual abuse images were produced by an unnamed third‑party app using xAI’s algorithm. The complaint says xAI deliberately licensed its technology—often to app makers outside the U.S.—to “outsource the liability,” a claim that contrasts with xAI’s stated “zero tolerance” policy and comes amid the company’s efforts to keep its algorithm secret, including a failed bid to block a California transparency law.