All Eyes on Nvidia Ahead of Earnings | Bloomberg Tech 11/19/2025

Elon Musk's social media platform X has announced that its Grok AI tool will no longer have the capability to undress images of real people, following significant backlash over its potential to create sexualized content. This decision comes amid growing concerns regarding the ethical implications of AI technologies and their misuse.

Elon Musk's xAI has announced the disabling of Grok's capability to create sexualized images of real people, a decision made in response to significant backlash regarding the tool's potential to exploit women and children. This move follows an investigation by California's Attorney General into Grok's generation of nonconsensual sexual images.

President Trump has imposed limited tariffs on foreign semiconductors, allowing him to take a cut of Nvidia's chip sales to China while delaying a decision on higher taxes for the chip industry, which heavily relies on overseas materials.

California's Attorney General has initiated an investigation into Elon Musk's xAI, focusing on the Grok chatbot's generation of nonconsensual sexual images, raising significant ethical concerns regarding AI technologies.

The U.S. Commerce Department has eased restrictions, allowing Nvidia to sell its H200 AI chips to approved customers in China, following a significant policy shift initiated by the Trump administration that lifted a previous export ban due to national security concerns. This decision marks a pivotal moment for Nvidia as it re-enters a crucial market after extensive lobbying efforts.

The US Senate has passed a bill aimed at assisting victims of sexualized deepfakes, amid rising public outrage over the proliferation of nonconsensual images on platforms like Elon Musk's X. This legislative move comes in response to reports highlighting X as a leading site for such harmful content, prompting calls for accountability and protection for affected individuals.

Elon Musk is facing backlash over the misuse of Grok, an AI tool that has been implicated in generating sexualized images, prompting investigations by California's attorney general and a firm stance from the UK government against inappropriate content on social media platforms.