The British government intensified its crackdown on AI-generated sexual abuse Monday after ministers confirmed a possible ban on Elon Musk's social media platform X amid a widening probe and with the company potentially incurring hefty fines.

The dramatic move follows the launch of a formal investigation by Ofcom, the U.K. communications regulator, into whether X breached its legal duties under the U.K.'s Online Safety Act and came after reports that the platform’s built-in AI chatbot, Grok, was used to generate and share sexualized deepfake images of women and children.

Grok was launched in 2023 but its image generator feature, Grok Imagine, was added in 2025 with a specific mode to generate adult content.

Secretary of State for Science, Innovation and Technology Liz Kendall described the recent use of the AI tool being misused to generate sexually explicit and non-consensual images as "deeply disturbing." 

Kendall also warned that social media companies would be held accountable if they failed to act.

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"I welcome Ofcom’s urgency in launching a formal investigation today," Kendall said, according to Reuters. "It is vital that Ofcom complete this investigation swiftly because the public – and most importantly the victims – will not accept any delay."

In a separate statement shared later Monday, Kendall said the Grok AI tool had been used to create and circulate degrading, non-consensual intimate images.

"No woman or child should live in fear of having their image sexually manipulated by technology," she said before adding, "The content which has circulated on X is vile. It is not just an affront to decent society, it is illegal."

Kendall added that sharing or threatening to share deepfake intimate images without consent, including images of people in their underwear, constitutes a criminal offense under U.K. law.

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She warned that Ofcom has the authority to issue "fines worth millions of dollars" or penalties of up to 10% of a company’s qualifying worldwide revenue.

"But X does not have to wait for the Ofcom investigation to conclude," Kendall said. "They can choose to act sooner to ensure this abhorrent and illegal material cannot be shared on their platform," she warned.

Ofcom had said it "urgently made contact" with X on Jan. 5, demanding explanations about the steps being taken to protect U.K. users and setting a response deadline of Jan. 9.

While xAI, another company founded by Musk, responded, Ofcom said it decided to open a formal investigation after reviewing the available evidence "as a matter of the highest priority."

In a statement shared Monday, Ofcom said, "Reports of Grok being used to create and share illegal non-consensual intimate images and child sexual abuse material on X have been deeply concerning."

"Platforms must protect people in the UK from content that’s illegal in the UK, and we won’t hesitate to investigate where we suspect companies are failing in their duties, especially where there’s a risk of harm to children," the statement said.

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As previously reported by Fox News Digital, the chatbot acknowledged in a public post on X that it had generated and shared an AI image depicting two young girls in sexualized attire, calling the incident a "failure in safeguards" and apologizing for the harm caused.

Amid mounting criticism, Grok confirmed it has begun restricting some image-generation and editing features to paying subscribers. The chatbot said the limitations were implemented to prevent further misuse.

Musk also accused the U.K. Government of "fascism" Monday for "arresting thousands of people for social media posts."

The billionaire Tesla founder had responded to a post on X that claimed the country arrests more people for social media posts than "any other country on earth." 

Alongside the Ofcom investigation, the U.K. government announced that legislation criminalizing the creation of non-consensual intimate images generated by AI would come into force this week.

Kendall said responsibility does not rest solely with individuals.

"The platforms that host such material must be held accountable, including X," she said. 

If they do not act, she said she is "prepared to go further."

Meanwhile, U.K. Prime Minister Keir Starmer's official spokesperson said the government’s presence on the platform was "under review" and that "all options are on the table."

The Associated Press also reported Monday that Malaysia and Indonesia have become the first countries to block Grok.

Fox News Digital has reached out to Elon Musk and Prime Minister Keir Starmer's office for comment.

The Associated Press and Reuters contributed to this report.