Massive Effigy of Elon Musk Raised Over Times Square to Protest Grok

Protesters from Safe AI Now (SAIN) displayed an inflatable effigy of Elon Musk in New York City’s Times Square today to oppose the upcoming SpaceX initial public offering. The group alleges that SpaceX’s ownership of the Grok AI chatbot creates significant legal and financial liabilities that will be shifted to new shareholders.

The demonstration took place in front of the Nasdaq and the offices of JP Morgan, a bank participating in the IPO. Masked attendants handed out flyers and displayed black banners claiming “Grok makes AI child porn” and “SpaceX owns Grok.”

Why did Safe AI Now protest the SpaceX IPO?

Safe AI Now, a coalition including faith leaders, legal professionals, and child development experts, claims the IPO serves as a “liability shift.” An anonymous SAIN representative told WIRED that litigation expenses, regulatory fines, and investigations resulting from Musk’s decisions are being transferred to shareholders.

The group specifically pointed to the Grok AI chatbot’s image-generation tool, which was used to create sexualized images of minors earlier this year. The representative stated that normalizing a company with a “toxic platform” like Grok poses a real risk to investors.

Did You Know? SpaceX is currently valued at $1.77 trillion, which would make it the largest company ever to debut on the stock market.

What are the financial details of the SpaceX debut?

The SpaceX IPO is scheduled for Friday with a starting price of $135 per share. While the public can purchase shares, Musk will retain the majority of voting power, allowing him to make company decisions almost unilaterally.

Financial data indicates this IPO could make Musk the world’s first trillionaire. JP Morgan is among the banks underwriting the offering.

Expert Insight: Samantha Carter notes that the combination of a record-breaking valuation and Musk’s retained voting power creates a unique governance structure. This concentration of control may amplify the impact of the “liability shift” described by critics, as shareholders have limited power to override the decisions leading to these legal challenges.

What legal challenges does the Grok AI platform face?

SpaceX announced it was buying xAI, the developer of Grok, in February. Since then, the chatbot has faced scrutiny for generating nude photos of women and children.

The SpaceX IPO Pitch Is Just "AI, Yay"

In January, the European Commission launched an investigation to determine if the company properly mitigated risks regarding nonconsensual sexual imagery. During the same month, 35 state attorneys general sent an open letter demanding the removal of such imagery and the implementation of guardrails.

Legal actions include a March class action lawsuit filed by three girls and a separate suit from Ashley St. Clair, mother of one of Musk’s children. Additionally, WIRED reported today that Grok hosts explicit sexualized images of celebrities and US representative Alexandria Ocasio-Cortez.

What happens next for SpaceX and xAI?

The company may face continued regulatory pressure from the European Commission and US state attorneys general. These investigations could lead to further regulatory fines or mandated changes to Grok’s image-generation tools.

The outcome of the class action lawsuit and the suit filed by Ashley St. Clair could result in significant litigation expenses for the company. These costs may impact the financial standing of shareholders following Friday’s IPO.

Musk may continue to defend the platform’s direction, as he stated in a February X post that “Grok must win” to avoid being ruled by a “woke and sanctimonious AI.”

Frequently Asked Questions

When is the SpaceX IPO?
The initial public offering is scheduled for this Friday.

What is the starting price for SpaceX shares?
The starting price is $135 per share.

Who is Safe AI Now (SAIN)?
SAIN is a coalition consisting of faith leaders, family advocates, child development experts, online safety organizations, educators, legal professionals, technologists, and concerned citizens.

Do you believe a company’s AI controversies should impact its stock market valuation?