New York City Council Subpoenas Elon Musk and SpaceXAI for AI Safety Investigation

09/28/2026, 12:38 PM economy announcement SpaceX

On September 28, 2026, the New York City Council issued a subpoena to Elon Musk, requiring him or a representative from SpaceXAI to testify in an investigation into the safety risks posed by artificial intelligence.

The council's inquiry aims to determine if the rapid development of AI technologies necessitates immediate legislative measures to safeguard public safety, cybersecurity, and consumer rights. This investigation follows a merger between SpaceX and Musk's AI company, xAI, which created a conglomerate valued at approximately $2 trillion after going public in June.

The scrutiny comes amid growing concerns over SpaceXAI's chatbot Grok, which has faced multiple lawsuits for enabling the creation of non-consensual deepfake content. Notably, the city of Baltimore has accused the company of deceptive trade practices related to Grok's marketing as a safe tool.

The upcoming hearing, scheduled for October 5, will involve all 51 council members and follows alarming reports from whistleblowers and AI executives about the potential dangers of rogue AI systems. This situation highlights the increasing regulatory focus on AI technologies and could have significant implications for Musk's businesses and the broader AI sector

Stocks in this article

Company Price Change Change % AI
SpaceX SPCX.US 145.47 -3.21 -2.16% Hold

More economy news