After sparking controversy for anti-Semitic social media posts, xAI's Grok AI is enabled on some Teslas via Summer Update 2025.26. Here's everything we know.

Just a day after the xAI team issued a comprehensive apology and explanation about why its chatbot was spreading antisemitic rhetoric, Tesla updated its software for its cars to include the supposedly fixed Grok.

xAI claims that a change on Monday, July 7th, “triggered an unintended action” that added an older series of instructions to its system prompts telling it to be “maximally based,” and “not afraid to offend people who are politically correct.”

Usually, when you try to mess with an AI chatbot, you have to be pretty clever to get past its guardrails. But Bad Rudy basically has no guardrails, which is its whole point. Getting Bad Rudy to suggest that you burn a school is as easy as getting Ani to fall in love with you.

The latest Grok controversy is revealing not for the extremist outputs, but for how it exposes a fundamental dishonesty in AI development.

AI, Elon Musk’s artificial intelligence company, has secured a contract with the U.S. Department of Defense and launched “Grok for Government,” a specialized version of its chatbot platform tailored for federal use.

Finnish e-motor startup Donut Lab raised €25 million ($29.2 million) in a seed funding round led by Risto Siilasmaa, the founder of cybersecurity company WithSecure (formerly F-Secure). Risto has also joined Donut Lab’s board.

Tesla stock rose Monday morning after CEO Elon Musk said Tesla should be able to invest in his xAI startup pending a shareholder vote. This would be another instance of the “Muskonomy” at play, where Musk’s companies become more financially intertwined,