Elon Musk has announced that X, the social media platform he owns, plans to introduce ads directly into responses from its AI chatbot, Grok. He shared this update during a live discussion with advertisers on Wednesday, according to a report by the Financial Times.
This move marks a new chapter for X as it looks for ways to bring in more revenue. The company’s advertising business has struggled since the departure of former CEO Linda Yaccarino. By placing ads inside Grok’s answers, Musk aims to turn the popular AI tool into a new source of income.
Shifting Focus from AI Development to Monetization
So far, the team’s main focus has been on building Grok into a smart and accurate chatbot.
“Our focus thus far has just been on making Grok the smartest, most accurate AI in the world,” Musk said. “And I think we’ve largely succeeded in that.”
Now, X is turning its attention to funding the system. Running Grok requires expensive hardware, including high-powered GPUs. Musk said it’s time to figure out how to pay for it all..
How the New Ads Will Work
Musk said that advertisers will soon be able to pay to appear in Grok’s responses. For example, if a user asks Grok how to fix a problem, a company could promote a product as part of the answer.
“If a user’s trying to solve a problem [by asking Grok], then advertising the specific solution would be ideal at that point,” he explained.
This means ads will be tied to the user’s question, rather than shown at random. The goal is to show useful, relevant content during conversations with the AI.
Better Targeting with Help from xAI
To make these ads more relevant, Musk also plans to use technology developed by his AI startup, xAI. The startup, which acquired X earlier this year in a $45 billion deal, will help improve how ads are targeted to users.
With xAI’s tools, X aims to deliver ads that better match what people are looking for, based on their interactions with the platform and with Grok.
What This Means for X
This new advertising model could give X a much-needed boost as it competes with other tech companies in both social media and artificial intelligence. By combining real-time user questions with relevant ad content, X hopes to create a more engaging and profitable experience.
At the same time, this plan raises important questions. How will users respond to ads being part of chatbot conversations? Will it affect trust in Grok’s answers? These are issues that X will need to address as the rollout begins.
For now, it’s clear that Musk sees Grok not just as a helpful AI tool, but also as a key part of X’s future business model.
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