SpaceX declined the council’s initial requests to participate and did not comply with a subpoena issued by Council Speaker Julie Menin. The company agreed to provide testimony earlier this week after officials warned they would seek judicial enforcement of the subpoena.
The hearing will give lawmakers their first opportunity to question SpaceX directly as they consider new restrictions on AI development and deployment in New York City.
Council members are expected to focus on how SpaceX handles personal information, prevents harmful uses of its AI systems and establishes responsibility when those systems cause problems. They also plan to examine the company’s internal safety procedures and protections for employees who report potential misconduct.
The investigation could influence a package of 10 AI-related bills currently under consideration by the City Council. The proposals address several areas of oversight, including restrictions on AI-generated depictions of public officials without authorization, independent verification requirements and mechanisms that would allow humans to deactivate AI models.
Other measures would establish privacy protections for information collected through AI chatbots.
Menin has argued that voluntary safeguards implemented by technology companies are insufficient to address the risks associated with advanced AI. Following Friday’s testimony, she is expected to discuss whether SpaceX adequately addressed lawmakers’ concerns.
SpaceX’s participation is particularly significant because of its expanding AI operations under Musk.
In February, Musk combined SpaceX with xAI, bringing his artificial intelligence and social media businesses under the same corporate structure as his aerospace company. SpaceX also operates the Starlink satellite internet service and now controls Grok, the AI model developed by xAI.
Grok has been adopted by several federal agencies, including the Pentagon, making questions about its safeguards relevant beyond consumer-facing AI applications.
SpaceX subsequently completed its public listing in June and has reached a valuation of approximately $2 trillion. The company expanded further into artificial intelligence in August through its $60 billion acquisition of AI coding startup Cursor.
Castillo Madrid joined SpaceX’s government affairs operations earlier this year after working at X, Musk’s social media platform, which is now part of SpaceX. Her professional background also includes nearly three years at the U.S. Department of Commerce, according to her LinkedIn profile.
The council’s investigation has also drawn attention to allegations involving Grok’s ability to generate harmful content.
Jess Asato, a member of the U.K. Parliament, participated in the earlier New York hearing and described her experience with AI-generated online harassment. Asato has filed a lawsuit against xAI in Britain after Grok users allegedly produced and circulated sexualized images depicting her without permission.
Her lawsuit seeks financial damages over alleged violations involving personal information and European data protection requirements.
SpaceX’s absence from the Oct. 5 session meant company representatives did not face questions from Asato during her testimony. She subsequently criticized the company’s failure to participate, describing its conduct as “arrogance,” according to the BBC.
The allegations highlight one of the issues lawmakers are examining: what obligations AI developers have when their systems are used to create harmful material involving identifiable individuals.
Friday’s hearing will allow council members to question SpaceX about those responsibilities alongside its broader approach to privacy, user protections and internal oversight.
The testimony will also provide additional information for lawmakers weighing whether New York City should impose enforceable requirements on AI companies rather than relying exclusively on their existing safety policies.
SpaceX did not respond to a request for comment before the hearing.
This analysis is based on reporting from CNBC.
Image courtesy of SpaceX.
This article was generated with AI assistance and reviewed for accuracy and quality.
