Elon Musk announced X’s intent to integrate advertisements within Grok’s responses, a strategy to bolster the platform’s advertising revenue following recent executive changes. This development was shared during a live discussion with advertisers on Wednesday, as reported by the Financial Times.
Musk indicated that the primary focus for Grok had been on its AI capabilities. He stated, “Our focus thus far has just been on making Grok the smartest, most accurate AI in the world and I think we’ve largely succeeded in that.” He then added, “So we’ll turn our attention to how do we pay for those expensive GPUs,” signaling a shift towards monetization.
The new advertising model will allow marketers to pay for their content to appear as suggestions from the AI chatbot. Musk elaborated on the potential benefit of this integration, explaining, “If a user’s trying to solve a problem [by asking Grok], then advertising the specific solution would be ideal at that point.” Additionally, Musk intends to leverage technology from his AI startup, xAI, to enhance the precision of ad targeting across the social network. xAI completed its acquisition of X earlier this year for $45 billion.
