Elon Musk told advertisers Wednesday that X will start inserting ads into responses from its AI chatbot Grok — a move aimed at boosting the platform’s ad revenue after a year of turbulence.
Why we care. This is an opportunity for brands to embed their solutions directly into answers when users ask for help, offering peak relevance and increased visibility at a moment of high intent. The initiative also promises smarter targeting via xAI’s technology, providing a fresh channel to reach engaged users at scale.
What’s happening:
- Advertisers will be able to pay for placement in Grok’s suggested solutions when users ask questions.
- Musk framed the move as a way to monetize while keeping the AI useful: “If a user’s trying to solve a problem, then advertising the specific solution would be ideal at that point.”
- Technology from Musk’s AI startup xAI will be used to improve ad targeting across X.
The context. Musk said X’s initial focus was on making Grok “the smartest, most accurate AI in the world,” but is now turning toward paying for the “expensive GPUs” that power it. xAI acquired X earlier this year for $45 billion.
Bottom line: Ads in Grok’s answers could give X a fresh revenue stream – and advertisers a new way to reach users at the exact moment they’re seeking solutions.
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