Corporate use of Anthropic’s cloud and Google Gemini AI models has also increased in the past year, according to market research firm Enterprise Technology Research. The firm’s survey of 500 people – also highlighted by the Wall Street Journal – reported that cloud use among respondents’ companies increased from 21 percent to 48 percent between 2025 and 2026. Similarly, Gemini usage increased from 27 percent to 40 percent over the same time period.
Corporate use of Grok also saw a small increase, rising from 4 percent to 7 percent. “We have launched Grok Business, Grok Enterprise, Grok API, and XAI Gov products, which we believe will be attractive to enterprises and governments, and we expect substantial opportunities to acquire new customers,” SpaceX wrote in its S-1 filing.
However, Reuters reported that “xAI’s Grok chatbot has been a flop with one of the world’s biggest customers – the US government.” A Reuters investigation of federal agencies’ AI inventory records in 2025 showed only three public mentions of using XAI or Grok out of more than 400 publicly disclosed examples of AI use by the government.
The peak of Grok’s download popularity coincided with the January 2026 update, which allowed Grok users to generate millions of sexually explicit images of women and children by using real photographs to depict people virtually naked – a situation that persisted for weeks before developers addressed the situation. The AI nudifying scandal led to a lawsuit against XAI and prompted the European Union to ban nudifying apps.
Grok still includes features like “Spicy” and “Unhinged” modes. SpaceX financial disclosures described those features as presenting increased risks, including “reputational damage, potentially explicit content and the generation of misinformation or misleading outputs, potentially non-consensual or exploitative imagery, intellectual property violations, or content that could be viewed as exploitative, harmful, harassing, abusive, or discriminatory.”
From a business perspective, SpaceX acknowledged that this exposes the company to “the risk of regulatory investigations, enforcement actions, litigation, or damage claims, as well as reputational damage, user or advertiser backlash, or limitations on our ability to distribute or monetize our products in certain jurisdictions or through certain partners.”
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