Elon Musk’s AI firm xAI is poised to swerve rivals’ plans to watermark all artificially-generated content, after refusing to sign up to a European push forcing firms to make AI content traceable, City AM understands. xAI was the only major large language model maker to shun a European Union-led move to tighten AI transparency rules, meaning the likes of Anthropic, Google and OpenAI’s responses will contain an invisible watermark. On Monday, Claude-maker Anthropic became the first major AI firm to announce plans to place machine-readable signals indicating a text had been generated using its model, marking “AI-generated content from day one” as part of its commitment to the EU’s AI Act. Other AI firms, including Microsoft, Meta and Mistral, also signed up to the charter. City AM understands that OpenAI plans to watermark text outputs as part of their EU AI Act commitment, and that the company is currently working through the details. OpenAI said in a post on its support website this month: “Consistent with our commitments under the European Commission’s Code of Practice on Transparency of AI-generated content, our goal is to expand provenance signals to all modalities including text.” Google is also expected to introduce measures covering AI-generated content under the code. However, xAI did not sign the code, meaning it has made no equivalent commitment through the agreement for Grok. Still, Musk’s AI firm will have to comply with applicable requirements under the EU AI Act, and so could