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The Canada Pension Plan Investment Board (CPPIB) is facing criticism for having provided $300 million US for the funding of infrastructure for Elon Musk’s xAI, the company behind the controversial Grok artificial intelligence chatbot tool.
Musk’s xAI has been at the centre of controversy in recent months, after it was discovered that Grok made it possible for people to create sexualized and nonconsensual images of others — including minors. Amid widespread backlash, xAI put some restrictions in place on the tool.
Yet Malaysia and Indonesia have barred access to Grok, and the product has come under scrutiny from authorities around the globe.
In Canada, the federal privacy commissioner is investigating both xAI and the Musk-owned X Corp. over reports that Grok is being used to create and share explicit images of people without their consent.
The CPPIB mentioned in an August news release that it had invested $300 million US into an xAI debt issuance that was aimed at raising funds « to finance the construction of the company’s second data centre in Memphis, Tennessee. »
That connection between the organization that manages the Canada Pension Plan and the Grok-maker has resurfaced, and critics are questioning if it’s a space the CPPIB should be in.
Law professor Kristen Thomasen says preventing the sharing of non-consensual deepfakes on X will likely require government legislation, warning it’s a structural issue that users have limited means to solve.
« It raises the question: what is the Canada Pension Plan ready to invest in? Pornhub? ICE? Illegal detention centres? Maybe the Canada Pension Plan could team up and invest in Russian bot farms, » Charlie Angus, the former MP for Timmins-James Bay, told the National Observer, when discussing the CPPIB-xAI connection.
Canada’s Finance Department said the CPPIB operates at arm’s length from government and that any questions about individual transactions should be directed to the organization.
CPPIB aims to push for changes
The CPPIB, meanwhile, is aware of the issues surrounding the « misuse » of Grok, and the institution intends to push for changes, a spokesperson told CBC News.
« We do not minimize the issue that has brought scrutiny to xAI, » Michel Leduc, the chief public affairs officer for the CPPIB, said in a lengthy statement sent via email.
« The misuse that the media and others have brought to light in recent months is nothing short of disgusting, » he said. « There is a real problem when any technology platform is deployed in a way that can be readily exploited to disrespect people, harm them, or violate their rights. »
Leduc further said the CPPIB has « reached out to xAI and requested a discussion to understand what controls they have in place, and what changes they are making, to prevent harmful, degrading, or exploitative content being created or circulated through their platform. »
While the CPPIB is monitoring « for a complete fix, » Leduc said « we will not advertise potential steps or the timing of steps that we might contemplate in any downside scenario. »
CBC News emailed xAI to ask about the extent of the CPPIB’s investment in the Memphis data centre. The company sent a brief response: « Legacy Media Lies » — a phrase xAI has used to respond to other inquiries about Grok in the past.