While Grok fails, SpaceX bets the future on beating big tech companies in AI



Corporate use of Claude de Anthropic and the Google Gemini AI models have also exploded in the past year, according to market research firm Enterprise Technology Research. The company’s survey of 500 people, also highlighted by The Wall Street Journal, showed that usage of Claude among respondents’ companies rose from 21 percent to 48 percent between 2025 and 2026. Similarly, usage of Gemini rose from 27 percent to 40 percent in the same time period.

Grok’s corporate usage also saw a smaller increase, rising from 4 percent to 7 percent. “We have launched Grok Business, Grok Enterprise, Grok API and xAI Gov, products that we believe will be attractive to enterprises and governments, and we expect substantial opportunities to acquire new customers,” SpaceX wrote in its S-1 filing.

However, Reuters reported that “xAI’s Grok chatbot has been a failure with one of the world’s largest customers: the US government.” Reuters’ examination of federal agencies’ AI inventory records in 2025 showed only three public mentions of xAI or Grok use out of more than 400 publicly disclosed examples of government AI use.

The peak in popularity of Grok downloads coincided with a January 2026 update that allowed Grok users to generate millions of sexualized images of women and children by using real photos to practically undress people, a situation that persisted for weeks before the developers addressed the situation. The AI nudist scandal led to lawsuits against xAI and spurred the European Union to ban nudist apps.

Grok also incorporates features such as “Spicy” and “Unhinged” modes. SpaceX’s financial disclosure described those features as posing “increased risks, including reputational damage, the generation of potentially explicit content and misinformation or misleading results, potential non-consensual or exploitative imagery, intellectual property infringement, or content that could be considered exploitative, harmful, harassing, abusive or discriminatory.”

From a business standpoint, SpaceX acknowledged that this leaves the company exposed to “the risk of regulatory scrutiny, enforcement actions, litigation or damage claims, as well as reputational damage, negative reactions from users or advertisers, or limitations on our ability to distribute or monetize our products in certain jurisdictions or through certain partners.”



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