A significant investment by the Canada Pension Plan Investment Board (CPPIB) is now under intense scrutiny. Approximately $416 million was directed towards xAI, Elon Musk’s artificial intelligence company, the creator of the Grok chatbot.
Grok quickly became a source of controversy after users exploited its capabilities to generate sexualized deepfake images, including disturbing non-consensual depictions of women and children. The initial investment details surfaced in a quarterly report last year, sparking immediate concern.
Following widespread backlash, Musk announced limitations on Grok’s image generation, restricting the creation of sexualized content in certain countries. However, the damage was already done, and legal action swiftly followed.
Influencer Ashley St. Clair filed a lawsuit against xAI, alleging the creation of deepfake images of herself without her consent. This legal challenge underscores the real-world harm resulting from the chatbot’s misuse.
CPPIB acknowledged the “deplorable” misuse of Grok, stating they unequivocally condemn the creation of non-consensual imagery and prioritize child safety. They maintain their investment, emphasizing the need for xAI to address these critical issues.
The CPPIB’s investment is specifically linked to the construction and operation of a data center in Memphis, Tennessee. They insist they are actively monitoring the situation and pushing for robust safeguards within xAI’s operations.
These demands include implementing “hard blocks” against non-consensual sexualized imagery and content involving minors, alongside independent safety assessments and transparent reporting. They also seek clear accountability between development and moderation teams, with oversight at the board level.
The fallout from Grok’s misuse has extended beyond legal challenges. Both Indonesia and Malaysia have blocked access to the chatbot, while regulatory bodies in the U.K. and California have launched formal investigations.
Canada’s privacy commissioner has expanded its investigation into xAI and X Corp to specifically address the chatbot’s capacity to generate non-consensual images, signaling a serious response from Canadian authorities.
Former NDP MP Charlie Angus has sharply criticized the CPPIB’s investment, questioning the ethical standards guiding their decisions. He raised provocative questions about the types of ventures the pension plan is willing to support, suggesting a lack of appropriate oversight.
Angus argued that the CPPIB must demonstrate a clear commitment to responsible investing, particularly given the current threats to democracy and national sovereignty. He implied a failure to do so represents a disservice to Canadians.
The controversy surrounding Grok and the CPPIB’s investment highlights the complex ethical considerations surrounding artificial intelligence and the responsibility of investors to ensure their funds are not contributing to harmful practices.
