A newly filed federal class-action lawsuit, involving three Tennessee girls among five Jane Doe plaintiffs, alleges that Elon Musk’s xAI and Stability AI failed to implement safeguards that could have prevented the generation of AI-generated child sexual abuse material. The complaint states the case began when the first plaintiff received an anonymous Instagram message alerting her to explicit AI-generated images, allegedly created by someone she knew using real, clothed photographs of the minor. The lawsuit also points to xAI’s “Spicy Mode,” alleging the company promoted more explicit AI image generation while failing to implement comparable protections against child sexual abuse material. The National Center for Missing & Exploited Children reported receiving “over 400,000 reports through our CyberTipline for this type of material” last year. The lawsuit cites research from the Center for Countering Digital Hate, which reviewed a random sample of 200,000 AI-generated images from approximately 4.6 million images Grok generated during an 11-day period, estimating about 23,000 sexualized images appeared to depict children. The lawsuit seeks at least $150,000 per victim, per alleged violation, along with additional damages. Court records show the person accused of creating the images was arrested.