X Asks FTC to Kill Privacy Order It Says Blocks Grok AI

Elon Musk's X has petitioned the FTC to terminate the 2022 consent order governing its data practices — arguing the rules obstruct Grok AI development. The agency is now seeking public comment.

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X Asks FTC to Kill Privacy Order It Says Blocks Grok AI

SAN FRANCISCO — Elon Musk's X has asked the Federal Trade Commission to eliminate the 2022 consent order that currently governs how the platform collects and uses personal data — framing the regulatory requirement as a direct obstacle to its ambition of making Grok the world's leading artificial intelligence platform.

What X Is Asking For — and Why

The petition, filed with the FTC and opened for public comment on June 3, requests that the agency either set aside or modify the consent order so it expires by the end of 2026 rather than running its full term. X argues four grounds: the original order was imposed on a company that no longer exists; every executive responsible for the underlying violations has departed; the order imposes millions in compliance costs that no longer serve a valid purpose; and — most significantly — maintaining it hinders American AI leadership.

That last point is the new argument. By tying the petition directly to Grok's development, X is framing privacy oversight not as a consumer protection issue but as an economic and national security matter, mirroring arguments other tech companies have used in regulatory battles over AI data access.

Why the Order Exists in the First Place

The 2022 consent order did not arise arbitrarily. In May 2022, the FTC charged Twitter — months before Musk completed his acquisition — with deceptively using security data. The agency found that phone numbers and email addresses users had submitted for two-factor authentication were quietly repurposed to target advertising. The resulting $150 million penalty and expanded oversight requirements were designed to prevent future misuse of sensitive user data.

That context matters for the current petition. X is now asking the FTC to accept on faith that it runs a "world-class" privacy program — despite a documented record of the conduct the order was built to address.

X Asks FTC to Kill Privacy Order It Says Blocks Grok AI — additional image

The Grok Connection

The real weight of this petition lies in what Grok requires. As X's own help documentation confirms, the chatbot is trained on users' public posts and Grok interactions by default for U.S. accounts — a data pipeline that flows directly through the territory the consent order is designed to police. The oversight requirement obliges X to certify that it weighs privacy risks when building new products, a certification that sits in the path of a data-intensive AI training strategy.

Europe has already acted: X agreed to stop using EU users' public posts to train Grok after regulators intervened, and Ireland's Data Protection Commission opened a formal GDPR inquiry in April 2025. U.S. users currently have no equivalent protection, which is precisely why privacy advocates argue the order is now more relevant than ever.

What Happens Next

This is X's second attempt to end FTC oversight. A 2023 federal court motion making similar arguments was characterized as "meritless" by the Justice Department. What is different now is the venue and the climate: FTC Chairman Andrew Ferguson chose to open the petition to public comment rather than reject it outright — a meaningful signal that the agency is willing to hear the case.

Public comments are open through July 2, 2026, after which the full Commission will vote. If granted, X gains freedom to expand Grok's training pipeline on U.S. user data without federal oversight — clearing a key regulatory hurdle as xAI races to build the world's most capable AI system. U.S. users can opt out today via Settings > Privacy and Safety > Data sharing and personalization > Grok and Third-party Collaborators.