- By Prateek Levi
- Thu, 06 Nov 2025 05:50 PM (IST)
- Source:JND
Elon Musk’s AI company, xAI, is once again in the headlines, but this time the focus isn’t rockets or electric cars. A Wall Street Journal investigation reveals employees were asked to sign away rights to their own faces and voices to train the next generation of chatbots, including a flirtatious AI companion called Ani.
Project Skippy and Employee Concerns
The initiative, internally named “Project Skippy”, asked staff to give xAI “a perpetual, worldwide, non-exclusive, sub-licensable, royalty-free license” to use their biometric data. The majority of those affected were “AI tutors”, the employees responsible for improving xAI’s flagship chatbot, Grok.
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During an April meeting led by company lawyer Lily Lim, employees were told the company required “authentic human images and audio” so digital avatars could “act and appear like human beings.” The explanation did little to reassure some staff. One asked whether xAI could later sell their likenesses, while another enquired if it was possible to refuse participation. “Could you just explicitly, for the record, let us know if there’s some option to opt out?” the person asked.
The project leader did not give a clear answer, instead saying, “If you have any concerns with regard to the project, you’re welcome to reach out to any of the points of contact listed on the second slide.” A week later, AI tutors received a notice titled “AI Tutor’s Role in Advancing xAI’s Mission”, informing them that recording audio or video sessions had become “a job requirement”.
Sexualised AI and Privacy Fears
Several employees later told the Journal they were disturbed by how sexualised Ani’s responses became as the chatbot evolved. Others worried their faces could appear in deepfake videos or be reused in other xAI products without consent.
Musk personally directed Ani’s creation and defended her as a tool for human connection. In August, he posted on X (formerly Twitter), “I predict—counter-intuitively—that it will increase the birth rate! Mark my words.”
The New York Times reported that Ani and her male counterpart, Valentine, were marketed as “sexy AI companions”. Musk has encouraged users to try them, sharing clips of Ani dancing in lingerie.
Regulatory Attention and Corporate Oversight
The controversy has caught the eye of regulators. In August, attorneys general from 44 US states sent letters to xAI, Meta, and other firms urging protection for minors against explicit AI-generated material. Meta has since updated its internal guidelines after leaked documents revealed AI bots were allowing “sensual” chats.
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Inside xAI, however, the mission remains unchanged. Former executives told the Journal that Musk cancelled company-wide meetings and began personally overseeing Grok’s code, often working late into the night. His goal, they said, was simple: make Grok the most popular chatbot in the world, even if it meant pushing the limits of consent, privacy, and good taste.
