Wichita Falls, Texas - xAI, the artificial intelligence company owned by billionaire Elon Musk, is suing a South Carolina man for using their Grok chatbot to create deepfake porn.

In a lawsuit filed in federal court on Tuesday, xAI argued that Terry Harwood of Gray Court, South Carolina, "violated Plaintiff's applicable Terms of Service and Acceptable Use Policy" by sharing non-sexual images of adults and minors to Grok, which used them to generate sexually explicit deepfakes.

The suit claims Harwood fed the system "misleading" prompts to "circumvent" supposed "built-in safeguards."

"Defendant's actions were a calculated scheme to weaponize Plaintiff's tool for criminal ends, exposing real victims to profound and lasting harm, while exposing Plaintiff to significant legal risk and reputational damage," the complaint states.

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xAI is requesting an unspecified monetary amount in damages and that Harwood be banned from using Grok for life.

Harwood, who was also arrested in February for possessing and distributing the content, has been hit with multiple felony charges for sexual exploitation of a minor and is facing up to 80 years in prison.

The lawsuit marks the first time an AI company has sued one of its users for using their system to generate explicit material.

It also comes as Musk and xAI have been facing heavy criticism around the world for allowing Grok users to create such content.

In their suit, xAI claimed they have "suspended 52,222 accounts and made 73,604 reports to [the National Center for Missing & Exploited Children] in 2026, resulting in [at least] 244 arrests."