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Elon Musk, SpaceXAI subpoenaed by NYC in AI safety investigation

From CNBC Tech

By CNBC Tech

September 28, 2026

Elon Musk, SpaceXAI subpoenaed by NYC in AI safety investigation

Elon Musk, SpaceXAI subpoenaed by NYC in AI safety investigation

The New York City Council issued a subpoena on Monday to Elon Musk, requiring that he or another representative of SpaceXAI testify in an investigation concerning artificial intelligence safety risks.

The city's "investigation will assess whether fast-emerging risks to public safety, cybersecurity, economic stability, privacy, consumers and businesses warrant immediate legislative action to protect New Yorkers," according to a letter sent to Musk from Julie Menin, speaker of the city council.

SpaceX, Musk's reusable rocket company, merged with his AI venture, xAI, in February this year, creating a conglomerate that now owns X and chatbot Grok. The combined company went public in June and is now valued at roughly $2 trillion. Last month, SpaceX completed its $60 billion acquisition of AI coding startup Cursor.

Lawsuits are piling up against SpaceXAI after Grok enabled mass production of deepfake porn based on images of real people who did not consent. The city of Baltimore has accused the company of violating consumer protection laws and engaging in deceptive trade practices by marketing its Grok image generation and editing tool as generally safe.

SpaceXAI is also facing a proposed class-action lawsuit filed by teenagers after Grok generated images portraying them in sexualized and debasing scenarios.

In a press release on Monday, the New York City Council said Musk's testimony would "occur at a rare Council Committee of the Whole hearing," on Oct. 5, with all 51 members present.

"The hearing comes after weeks of serious warnings from whistleblowers and AI executives, and reports that rogue AI agents have already inflicted damage to government databases," the release said.

WATCH: Reps. Liccardo and Kiley on U.S.-China AI safety proposal

View original article on cnbc.com

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