Elon Musk’s platform X has limited image editing with its AI tool Grok to paying users, after it came under fire for allowing people to make sexualised deepfakes.

There has been a significant backlash after the chatbot honoured requests from users to digitally alter images of other people by undressing them without their consent.

But Grok is now telling people asking it to make such material that only paid subscribers would be able to do so – meaning their name and payment information must be on file.

The BBC has approached X for comment.

Those who do not subscribe can still use Grok to edit images on its separate app and website.

“Musk has thrown his toys out of the pram in protest at being held to account for the tsunami of abuse,” said Professor Clare McGlynn, an expert in the legal regulation of pornography, sexual violence and online abuse.

“Instead of taking the responsible steps to ensure Grok could not be used for abusive purposes, it has withdrawn access for the vast majority of users.”

It comes after the government urged regulator Ofcom to use all its powers – up to and including an effective ban – against X over concerns about unlawful AI images created on the site.

Addressing concerns that sexualised images of adults and children had been generated by Grok, Prime Minister Sir Keir Starmer said it was “disgraceful” and “disgusting”.

He said Ofcom had the government’s “full support” to act on the content.

“It’s unlawful. We’re not going to tolerate it. I’ve asked for all options to be on the table,” he said in an interview with Greatest Hits Radio.

Government sources told BBC News: “We would expect Ofcom to use all powers at its disposal in regard to Grok and X.”

Ofcom’s powers under the Online Safety Act include being able to seek a court order to prevent third parties from helping the Elon Musk-owned platform raise money or be accessed in the UK.

The BBC has approached the regulator for comment.

Grok is a free tool which users can tag directly in posts or replies under other users’ posts to ask it for a particular response.

But the feature has also allowed people to request it to edit images – and ask it to digitally strip people of most of their clothing.

Grok has fulfilled many user requests asking it to edit images of women to show them in bikinis or little clothing – something those subject to such requests have told the BBC left them feeling “humiliated” and “dehumanised“.

However as of Friday morning, Grok has told users asking it to alter images uploaded to X that “image generation and editing are currently limited to paying subscribers”.

It adds users “can subscribe to unlock these features”.

Some posts on the platform seen by BBC News suggest only those with a blue tick “verified” mark – exclusive to X’s paid subscriber tier – were able to successfully request image edits to Grok.

Prof McGlynn said the move echoed X’s approach to pornographic Taylor Swift deepfakes on the platform last year – where it blocked searches for sexualised material generated of the popstar using a Grok AI video feature.

“He is doing this to stoke free speech arguments,” she added.

“He will claim regulation is stifling people’s use of this technology. But, all the regulation requires is that he takes necessary precautions to reduce harm.”

Stock market crash: Equity benchmark indices, Nifty50 and BSE Sensex, have plunged by over 2% in the last few trading sessions, with both indices seeing the fifth consecutive day of crash on Friday. Concerns over global trade tensions and political developments in Washington have disrupted investor sentiment, adding to caution.Over the past five trading sessions, the BSE Sensex has shed over 2,100 points, falling from its January 2 close of 85,762.01 to an intraday trough of 83,506.79 on Friday. During the same period, the NSE Nifty 50 has declined to levels below 25,700.

Why is the stock market crashing?

1. FIIs sell-off: Ongoing foreign investor outflows have added to the pressure on equities during the prolonged slide. Foreign institutional investors sold shares worth Rs 3,367.12 crore on Thursday, January 8, marking the fourth straight session of net selling following a brief respite on January 2.The steady exit of overseas funds has intensified the weakness in benchmark indices, deepening losses amid an uncertain global backdrop and reinforcing a risk-averse stance among investors already navigating unfavourable external conditions.2. Trump trade & tariff uncertainty: Equity markets have remained under strain after US President Donald Trump indicated that tariffs on Indian exports could be increased over New Delhi’s continued purchases of Russian crude. A new bill proposing 500% tariffs on countries buying Russian oil has been given a nod by Trump.A proposed bilateral trade agreement between the two countries remains unresolved despite six rounds of discussions held since March. Speaking on the All-In Podcast, US Commerce Secretary Howard Lutnick suggested the talks lost momentum after Prime Minister Narendra Modi did not place a call to Trump. The Trump administration has already imposed tariffs of up to 50% on Indian goods, including a 25% levy linked to India’s imports of Russian oil, among the steepest applied to any trading partner. India has termed these measures “unfair, unjustified and unreasonable”.The uncertainty has intensified ahead of a pending ruling by the US Supreme Court on the legality of Trump’s tariff actions. If the court finds the levies unlawful, Washington could be required to return close to $150 billion to importers, a decision that would have far-reaching implications for global trade.“After the sharp correction yesterday triggered by the possibility of about 500% tariff on India under the provisions of the Russia Sanctioning Act approved by President Trump, the market will be focused on the verdict expected today from the US Supreme Court on the legality of Trump tariffs,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.“There is a high probability of the verdict going against Trump. But the details are significant: that is, whether it would be a partial striking down of the tariffs or completely declaring the tariffs illegal. The market reaction would depend on the details. If the Supreme Court declares Trump tariffs illegal, there would be a rally in India since India has been the worst affected by the 50% tariffs,” Vijayakumar added.He noted that the recent sharp selloff has dragged down even stocks unlikely to be directly affected by any punitive US measures. According to him, sectors such as financials, consumer discretionary and industrials, which have corrected due to broader market weakness, now offer opportunities for long-term investors to accumulate.3. Muted global signals: Soft cues from overseas markets have reinforced the cautious mood in Indian equities. Stocks across Asia slipped as investors awaited a key US employment report and prepared for a US Supreme Court decision on the validity of President Donald Trump’s broad tariff measures, a ruling that could once again unsettle global markets.4. Rising crude prices weigh on sentiment: Firming oil prices have added another layer of pressure on Indian markets, given the country’s significant reliance on imported crude. Prices moved higher amid lingering geopolitical risks, with investors closely monitoring developments in Venezuela following the capture of President Nicolás Maduro by US forces in a high-profile military operation in Caracas over the weekend.5. Technical signals point to continued weakness: Chart indicators have strengthened the bearish undertone, with key benchmarks breaking below important support levels during the recent decline.“Technically, the market breached the 20-day SMA (Simple Moving Average) support zone, and post-breakdown, selling pressure intensified,” said Shrikant Chouhan, Head Equity Research at Kotak Securities according to an ET report.“On daily charts, it has formed a long bearish candle, indicating further weakness from the current levels,” Chouhan said. He added that “We are of the view that as long as the market is trading below 26,000/84500, weak sentiment is likely to continue on the downside, and the market could slip till 25,750-25,700/84000-83700. On the flip side, if it moves above 26,000/84500, the pullback could continue till 26,075-26,100/84800-85000.”Geojit Investments also flagged caution, citing stretched technical readings. “Short term oscillators being oversold, and being in the vicinity of 30 December’s low, it will not be surprising if a turn high is attempted, as long as 25878 is not penetrated by much margin,” the brokerage said.“Alternatively, slippage past 25776 would have to be taken as a sign that Nifty is coming off a sideways trading range that has been on since November 2025, prompting us to consider possibilities of sharper fall, with 200 day SMA positioned deep at 25039 now.”(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)

New Delhi: Equity mutual fund (MF) inflows stood at Rs 28,054 crore in the month of December as systematic investment plans (SIPs) scaled a fresh record high last month, according to the Association of Mutual Funds in India (AMFI) data released on Friday. 

The monthly mutual fund SIP inflows reached a new record high in December at Rs 31,002 crore, compared to Rs 29,445 crore in November. The SIP investments rose by 5 per cent and 17 per cent on a monthly and yearly basis, respectively.

Gold ETFs also registered strong inflows of Rs 11,647 crore in December, higher than Rs 3,742 crore in November, showed the AMFI data.

Flexi-cap funds witnessed a sharp pickup in inflows, reflecting investor preference for strategies that offer allocation flexibility across market capitalisations amid evolving market conditions.

The mutual fund industry reported an overall net outflows of Rs 66,571 crore in December. Hybrid schemes attracted inflows of Rs 10,756 crore, while ‘other schemes’, including ETFs, saw net inflows of Rs 26,723 crore.

Overall, the flow trend suggests that equity participation remains structurally intact, but investors are becoming more discerning, with greater emphasis on portfolio balance, diversification, and risk management rather than broad-based risk-taking, said Himanshu Srivastava, Principal Manager Research, Morningstar Investment Research India.

Flows remained resilient despite intermittent market volatility, supported by steady SIP contributions and continued confidence in India’s long-term growth outlook, he added.

Amid rising participation from Gen Z, women and households from smaller cities and towns, India’s mutual fund industry, especially the SIPs, are set to witness robust growth in 2026.

Investors have poured over Rs 3 lakh crore into mutual fund schemes through systematic investment plans until November, for the first time in a calendar year. The data from AMFI showed earlier that SIP inflows in the calendar year touched Rs 3.04 trillion (lakh crore) for the first time, up from Rs 2.69 trillion in 2024.

SIPs have emerged as one of the strongest and most reliable engines of growth for the Indian mutual fund industry. Sustained net inflows, strong market performance, and deepening retail participation, aided by digitisation and financialisation of savings, have contributed to the steady surge in AUM, according to ICRA Analytics. India’s mutual fund industry’s assets under management (AUM) may surpass Rs 300 trillion by 2035, it added.