Elon Musk’s X is rolling out a rebuilt, artificial intelligence-powered advertising platform in a renewed effort to attract marketers, with the new system beginning its phased rollout on Thursday.
The move comes after the company faced early challenges in expanding advertising revenue under Musk’s ownership, prompting a strategic pivot toward alternative monetisation streams, including artificial intelligence products and subscription services.
Despite those setbacks, industry forecasts suggest X’s advertising business is gradually recovering.
Data from eMarketer estimates ad revenue will reach $2.26 billion in 2025, before climbing to $2.46 billion in 2026.
X said it has begun a “phased rollout” of its new advertising platform, which features updated AI-powered “retrieval and ranking systems.” The company says the upgrades are designed to help marketers build and manage more targeted campaigns with greater control.
According to X, artificial intelligence will also be used to improve campaign performance by delivering more relevant ad placements, tighter targeting, and stronger overall results.
“Very few companies would have the ambition and technical courage to completely rebuild their entire advertising platform in such a short timeframe. This is classic X and xAI — bold, fast, and focused on building something substantially better for advertisers,” said Monique Pintarelli, head of global advertising at xAI, in a statement posted on X. “We are designing this new ad stack to enable more rapid and seamless integration of ongoing innovation. Advertisers can expect a smooth delivery of continuous improvements and a regular drop of new features as we keep pushing the platform forward.”
Artificial intelligence has become a key driver of revenue growth in digital advertising across the tech sector, according to recent earnings reports. Companies including Google and Meta have benefited from what The New York Times described this week as a “digital ad boom,” supported by AI tools that increasingly automate core parts of the advertising process.
These systems are being used to streamline everything from ad creation and audience targeting to performance measurement, helping marketers run more efficient campaigns and improve returns on ad spending.
