X Corp faces Irish DPC scrutiny over AI data use

X Corp faces Irish DPC scrutiny over AI data use is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Social media giant X Corp, owned by Elon Musk, faces regulatory scrutiny from the Irish Data Protection Commission over a new default privacy setting that allows user data to be used for AI training without clear opt-out options on mobile.
• The DPC has expressed surprise at the rollout and is seeking clarification on the implications and implementation of this feature.

OUR TAKE
X Corp’s introduction of a default data collection setting for AI training raises significant privacy concerns. The Irish DPC’s inquiry underscores the need for transparency and user consent. X must address these issues to maintain trust and comply with strict EU regulations, especially given the potential for substantial fines.
–Vicky Wu, BTW reporter

What happened

Social media giant X Corp, owned by tech entrepreneur Elon Musk, is under increased regulatory scrutiny after introducing a new privacy setting related to AI data collection. The Irish Data Protection Commission (DPC), which oversees X’s operations within the European Union, has initiated an inquiry into the newly added feature, seeking clarity on its implications and implementation.

This setting, which is enabled by default, allows user data to be incorporated into the training dataset for Grok, a large language model series developed by xAI, another venture led by Elon Musk. Currently, users can only opt out of this data collection through X’s web version, with a similar option expected on mobile apps soon. Uncertainty surrounds whether X began collecting user data for AI training before providing users with the ability to opt out.

X Corp stated that all users have the ability to control whether their public posts can be used to train Grok, the AI search assistant, in addition to existing controls over interactions, inputs, and results related to Grok. The DPC has sent X questions “seeking clarity” about the new setting. “It took us by surprise that they were rolling this out,” a spokesperson for the regulator said.

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Why it’s important

The DPC’s questions reflect an element of surprise regarding the rollout of this setting, indicating potential regulatory compliance issues. xAI, the company behind Grok, recently secured significant funding and is investing in constructing an AI training supercomputer equipped with 100,000 GPUs. The most advanced model in the Grok series, Grok 1.5V, was launched in April and achieved a score of 53.6% on the MMMLU benchmark.

X’s regulatory challenges extend beyond its AI initiatives. The DPC is investigating the company in connection with at least five cases of potential regulatory compliance violations, which could result in fines of up to 4% of X’s global annual revenue. Additionally, the European Commission is examining X’s adherence to the EU’s Digital Services Act (DSA).

This scrutiny underscores the broader regulatory challenges X faces as it navigates its expanding AI and digital footprint. The investigation highlights concerns over user consent, data protection, and transparency, which are critical in maintaining trust and ensuring compliance with stringent European regulations.