SpaceX IPO faces Grok liability risk as inflatable Musk hits Times Square

SAIN argued that "SpaceX shareholders are on the hook for every Grok lawsuit, criminal investigation, and regulatory fine that is coming." The group said the display would remain in Times Square until 7 p.m. ET on Thursday.

Musk addressed similar concerns in January, saying that "anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content." X, the platform that hosts Grok, has said it maintains "zero tolerance for any forms of child sexual exploitation."

The IPO is scheduled for June 12. The S-1 filing lists Grok's NSFW functionality as a risk factor alongside the usual operational and competitive disclosures. SAIN's warning, delivered via the inflatable, is aimed at retail investors who may not have read the filing's risk section.

SAIN described itself as a coalition of faith leaders, child-safety advocates, and other concerned groups. The organization said: "The goal of this effigy of Musk is to deliver a simple warning to investors: Musk built a dangerous and exploitative AI, covered up the damage, merged it with SpaceX, and is now selling the liability to the public at $135 a share."