Woofun AI reports that xAI is relaxing content restrictions on Grok to address traffic funneling, with former employees estimating over half of usage stems from NSFW activities.

This shift supports significant cash flow, including $300 monthly subscriptions, while SpaceX’s IPO prospectus projects $3.2 billion in 2025 revenue for the AI division.

Regulatory scrutiny from the EU, France, and the UK has intensified regarding underage image generation, prompting internal dissent and researcher departures. While competitors like Anthropic and Google strictly block explicit content, xAI faces reputation risks, even as Grok’s video data potentially aids Tesla’s world model training.