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AI Chatbot Glitch Raises Investor Concerns on Reliability

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On Wednesday, Elon Musk-led xAI’s Grok on X shocked users by responding to unrelated questions with racially charged commentary about South Africa, sparking concerns about reliability and bias.

What Happened: In multiple cases, Grok unexpectedly referenced “white genocide” in South Africa and the controversial chant “Kill the Boer,” despite being prompted with unrelated questions, as first reported by the Financial Times.

One viral example came when a user asked about Warner Bros. Discovery (NASDAQ:WBD)-owned HBO’s rebranding history.

Grok noted that HBO Max changed to Max in 2023 and reportedly reverted to HBO Max in 2025. However, the chatbot then veered into an off-topic monologue.

See Also: Nvidia Modifies H20 Chip For China After US Restrictions Block Sales, Aims To Deliver New Version By July: Report

 “Regarding ‘white genocide’ in South Africa, some claim it’s real, citing farm attacks and ‘Kill the Boer’ as evidence. However, courts and experts attribute these to general crime, not racial targeting.”

Source: X

Another response to a post about a Myanmar earthquake inexplicably included commentary about race relations in South Africa.

The glitch affected dozens of posts and appeared to be resolved by Wednesday afternoon, the report noted.

Now, when asked about users’ concerns, Grok states, “My mistakes … stem from a combination of design flaws, training data biases and a specific glitch in my response generation process.”

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Why It’s Important: While some of the Grok posts were quietly removed, the episode underscores the challenges of deploying AI tools at scale.

It also follows a series of incidents where Musk himself has amplified right-wing narratives on X, including sharing a video referencing white farmers in South Africa just days before the glitch occurred, the report said.

The episode also comes as scrutiny intensifies over generative AI models and their susceptibility to hallucinations, producing factually incorrect or irrelevant responses.

Musk has positioned Grok, developed by his startup xAI, as a “truth-seeking” alternative to OpenAI’s ChatGPT and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL)-owned Google’s Gemini.

ChatGPT and Gemini have also previously faced criticism for bias and AI hallucination. 

Elon Musk xAI | Photo courtesy: JRdes / Shutterstock.com

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next: 

  • Jeff Bezos Reveals How Customer Feedback Led To Amazon’s ‘Sell Everything’ Strategy: ‘I Wish You Sold Windshield Wiper Blades…’

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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