SpaceX has listed Grok's 'spicy' mode as a risk in its initial public offering: 'These modes may be more irreverent and harsher than our standard offerings'

SpaceX has submitted filings for an initial public offering (IPO) with the SEC, a process that might make its majority owner, Elon Musk, the world's first trillionaire. An important part of such a filing is listing the risk factors that may potentially impact the business—and xAI's Grok gets a mention.

"Certain of our AI products, including Grok, offer features or modes designed to generate more candid, direct, or less reserved or irreverent outputs, such as 'Spicy' Imagine Mode and 'Unhinged' Voice Mode," says the filing.

"Because these modes may be more irreverent and harsher than our standard offerings, they present heightened risks, including reputational harm, the generation of potentially explicit content and misinformation or deceptive outputs, potential non-consensual or exploitative imagery, intellectual property infringement, or content that could be viewed as exploitative, harmful, harassing, abusive, or discriminatory."

There's a legal requirement to accurately and comprehensively disclose risks in an IPO filing, so it's no surprise that Grok's potentially "spicy" ways are categorised (via Wired).

The possibility of AI hallucinations that manifest in inadvisable (and legally dubious) ways is certainly a risk for any company, but Grok's "spicy" offerings seem capable of compounding the issue. The age-restricted features allow users to create potentially NSFW content, although they've been subject to additional safeguards and paywall restrictions since their release.

Still, Musk stated in March of this year that "if it's allowed in an R-rated movie, it's allowed in Grok Imagine."

The filing continues: "The availability of such features may also increase the risk of regulatory scrutiny, enforcement actions, litigation, or claims of harm, as well as reputational damage, user or advertiser backlash, or limitations on our ability to distribute or monetize our products in certain jurisdictions or through certain partners."

SpaceX also disclosed in the filing that allegations Grok was used to create sexualised imagery of minors are "subject to investigations and inquiries from regulators and law enforcement authorities in the United States and internationally."

The filing states. "We are subject to ongoing litigation, including putative class action lawsuits, relating to such allegations, and we may be subject to additional litigation in the future concerning these types of allegations."

Prior to the introduction of spicy mode, Grok had already landed itself in hot water with the infamous MechaHitler incident, in which the AI began regurgitating antisemitic tropes—something Musk attributed to its over-eagerness to please and the idea it was manipulated by guided user prompts.

The AI also previously made headlines for repeatedly referencing South African racial politics, something that was later blamed on "an unauthorised modification" that "directed Grok to provide a specific response on a political topic."

So, spicy mode or otherwise, Grok has been known to be something of a loose cannon at points in its development. Risky? SpaceX certainly seems to think so.