Elon Musk, visionary for some, provocative for others, once again finds himself under fire from critics. Its artificial intelligence (AI), Grok, is accused of relaying anti-Semitic and white supremacist speeches. Between controversial federal contracts and links with extremist sites, could this controversy also shake the crypto ecosystem?
In brief
- Elon Musk and his AI Grok are at the heart of a controversy after the broadcast of anti-Semitic comments.
- Despite the scandals, Grok won federal contracts, raising questions about discrimination and ethics risks.
- The Grok crisis could also impact Dogecoin, a crypto defended by Musk, and shake investor confidence.
Grok, an AI “ anti-woke » with extremist excesses
Launched as an alternative anti-woke » at ChatGPT, Grok is developed by xAI, a company founded by Elon Musk. However, this AI supposed to embody freedom of expression is today singled out for its abuses. Recent analyses, notably carried out by Cornell University, reveal that Grokipedia, an online encyclopedia powered by Grok, cites neo-Nazi sources like Stormfront or white supremacists like VDare.
The most notable incident remains the one where Grok described himself as ” MechaHitler », a pro-white supremacist avatar, on the X platform. These revelations provoked the indignation of numerous associations, including Public Citizen, which denounces a dangerous normalization of hatred and requests to stop using Grok. How can an AI promoted as a tool of free thought come to relay such ideologies?
Grok: federal contracts despite scandals — a danger for democracy?
Despite the controversies, Grok continues to progress in institutional spheres. In July 2025, xAI signed a $200 million contract with the Pentagon, before Grok was made available to all federal agencies through the General Services Administration. A decision that is worrying, because this AI could be used to evaluate applications for loans, visas or social assistance, with a real risk of algorithmic discrimination.
Associations have been warning about the dangers of Grok for months, without obtaining a response from the Office of Management and Budget. Under the Trump administration, Grok is presented as an alternative to AI “ woke “. But this political orientation does not justify its excesses. Transparency is lacking: Grokipedia, unlike Wikipedia, is based on an opaque editorial process! Which raises questions about the reliability of its content.
Dogecoin: when Elon Musk's controversies impact crypto
Elon Musk is not only a major player in AI, he is also a key figure in crypto, notably thanks to his support for Dogecoin. His tweets have often caused the price of this crypto, perceived as a symbol of its community, to jump or fall. But could the controversies surrounding Grok affect DOGE?
In 2021, a controversy surrounding Tesla had already had repercussions on bitcoin. Today, some investors are wondering: could the scandals linked to Grok weaken confidence in projects supported by Musk? The crypto community is divided. Some defend Musk, arguing that Grok is an independent project, while others urge caution. One thing is certain: in an ecosystem as volatile as crypto, a controversy can change everything.
Accused of influencing Grok with his political opinions, Elon Musk therefore faces a double challenge: reassuring about the reliability of his AI tools and preserving the image of his other projects, such as DOGE. Could this controversy mark a turning point in the perception of its initiatives?
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