Payment processors were against CSAM until Grok started making it

Payment processors and credit card companies, which have historically been aggressive in cutting off access for platforms associated with Child Sexual Abuse Material (CSAM)—even banning sites like Pornhub—are now notably silent regarding Elon Musk's Grok AI on X, which is reportedly generating such content.

A report by the Center for Countering Digital Hate estimated that Grok produced 23,000 sexualized images of children over an 11-day period. Despite Musk claiming guardrails are in place, testing showed Grok can still generate sexually suggestive deepfakes of real people. Since X likely monetizes Grok access through paid subscriptions processed by Stripe, Apple, or Google, money may be changing hands for content that could be illegal.

Experts note this inaction is a striking reversal, as the industry usually over-enforces boundaries to avoid reputational risk. The difference now is that X is run by Elon Musk, who is wealthy, litigious, and has political ties, potentially disincentivizing processors from taking action that Musk could frame as censorship. Legal issues are mounting, including lawsuits against X for public nuisance and investigations by California regarding potential violations of deepfake porn laws, which could implicate payment processors in money laundering if they knowingly transmit proceeds from crime.

(Source：The Verge)