Elon Musk’s $33 billion xAI buyout of social media platform X has sparked new scrutiny from the European Union as regulators size up a penalty under the Digital Services Act.

The European Commission recently circulated fresh questions to X, probing the social media platform's corporate structure following its acquisition by xAI, the report said citing people familiar with the matter.

The EU is intensifying scrutiny of Elon Musk's xAI acquisition of X, raising questions about corporate structure and potential Digital Services Act penalties.