Tesla has installed its AI chatbot, Grok, in all new vehicles starting July 12, sparking concerns over data collection and privacy. The chatbot is created by xAI, a privately-held company co-founded by Tesla CEO Elon Musk.
Grok can now be accessed through the in-car display’s homescreen, allowing users to ask questions or give tasks to perform. While it cannot control vehicle functions yet, its potential uses are vast, from responding to emails to summarizing books.
However, this new partnership between Tesla and xAI may lead to significant data sharing. The companies have not disclosed financial details, but millions of Tesla owners will now be able to use Grok. This could result in increased computing costs for xAI.
Tesla assures that driver conversations with Grok are “securely processed” by xAI, with anonymized and vehicle-identifiable information shared only with contracted service providers. Yet, the company’s privacy policy reveals it collects personal data, user content, and social media information.
The extent of data collected is unclear, but automobiles have become powerful data-collecting devices. Vehicles generate 25 gigabytes of data per hour, making them valuable to companies like xAI.
Tesla uses vehicle data for its self-driving AI models and allows customers to download the data. However, the company hasn’t updated its privacy policy since the addition of Grok, leaving it unclear how conversations may be used.
“This is part of a larger trend in the automotive industry,” says Albert Cahn, executive director of the Surveillance Technology Oversight Project. “Cars have become heavily monitored parts of our lives, and there’s a huge risk that collected data will be used against us.”
As vehicles become increasingly equipped with cameras, sensors, and GPS, more data points are being collected from drivers. While companies claim to anonymize data, re-identification is often possible.
Ultimately, the trade-offs between new technology and privacy must be considered by consumers. Elon Musk’s vision of a unified business empire raises concerns over data collection and usage.
Source: https://fortune.com/2025/07/19/elon-musk-tesla-xai-grok-mixes-business-interests-llm-training-data-privacy-questions