Elon Musk announces that X will introduce ads within Grok AI’s responses, aiming to boost ad revenue and offset the high cost of running AI infrastructure. Image Source: ChatGPT-4o
Elon Musk to Add Ads in Grok AI Chatbot Responses on X
Key Takeaways:
Elon Musk announced plans to introduce ads within Grok AI’s responses on X.
The move follows the exit of former CEO Linda Yaccarino and aims to support X’s struggling ads business.
Musk said the focus so far has been on making Grok “the smartest, most accurate AI in the world”, but now attention will shift to funding expensive GPU infrastructure.
Marketers will be able to pay to appear in AI-powered suggestions from Grok.
Musk will use xAI technology to improve ad targeting after xAI’s $45 billion acquisition of X earlier this year.
X Plans to Monetize Grok Through Advertising
X owner Elon Musk said Wednesday that the platform will soon introduce advertisements into Grok AI chatbot’s responses, according to remarks reported by the Financial Times.
The change is intended to boost X’s advertising revenue, which has struggled since the departure of former CEO Linda Yaccarino.
“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,” Musk said during the broadcast. “So we’ll turn our attention to how do we pay for those expensive GPUs.”
Ads Targeted to AI Conversations
Musk told advertisers that brands will be able to pay to have their content appear in Grok’s problem-solving suggestions.
“If a user’s trying to solve a problem [by asking Grok], then advertising the specific solution would be ideal at that point,” Musk explained.
xAI’s Role in Ad Targeting
Musk also plans to leverage xAI’s technology to improve ad targeting on X. His AI startup xAI acquired X earlier this year for $45 billion, a move that consolidates AI development and social media under his control.
Q&A: Elon Musk’s Ad Plans for Grok
Q: What is Grok?
A: Grok is X’s AI chatbot, developed to provide conversational responses and problem-solving suggestions.
Q: What change is Elon Musk making to Grok?
A: He plans to add ads directly into Grok’s responses.
Q: Why is X adding ads to Grok?
A: To boost ad revenue and fund costly GPU infrastructure for running the AI.
Q: How will the ads work?
A: Marketers can pay to have their solutions promoted when users ask Grok related questions.
Q: What role will xAI play?
A: xAI’s technology will be used to improve ad targeting across X.
What This Means
By embedding ads directly into Grok’s AI responses, Musk is positioning X to turn its AI capabilities into a monetization engine rather than just a product feature. This could help stabilize the platform’s ad revenue after recent leadership changes, while also offsetting the high cost of AI infrastructure.
The move also places X alongside other AI companies testing integrated ad formats inside conversational products. For example, Perplexity AI is experimenting with sponsored follow-up questions that appear after a user submits a query, ensuring ads remain relevant and non-intrusive. While Perplexity’s approach focuses on keeping the main AI answer ad-free and monetizing through contextual, scroll-based placements, Musk’s plan takes a more direct route — inserting ads within the primary AI-generated response itself.
Both strategies reflect a broader industry trend: as AI assistants replace or supplement traditional search, monetization models are shifting toward deeply embedded, context-aware advertising that blends into the flow of conversation.
Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.