Reports from the daily Handelsblatt shed new light on the strained relationship between Brussels and Elon Musk‘s tech empire. According to senior EU officials, the European Commission is initiating formal proceedings against chatbot Grok under the Digital Services Act (DSA). This is no mere admonition – the aim is clear: to force xAI to withdraw the tool from the European market.
For executives and investors, this signals that EU regulators have moved from merely monitoring the market to actively defending democratic values and data security. The main flashpoint is the way Grok uses user data on Platform X to train its models without sufficient transparency and consent, according to the EU.
From a business perspective, this situation sets a dangerous precedent for AI companies operating on a ‘move fast and break things’ model. If xAI succumbs to pressure, Europe could become a digital island with limited access to the most controversial models, which in turn will force local companies to rely on suppliers declaring full compliance with strict EU law. This is a test of strength that will define the cost of innovation in the region.
