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X to display ads on Grok’s AI responses

X to display ads on Grok’s AI responses

X, formerly known as Twitter, is set to begin displaying ads within responses from its AI chatbot, Grok, according to owner Elon Musk.

The announcement was made during a live discussion with advertisers on Wednesday, as reported by the Financial Times.

The decision marks a significant shift in the company’s monetization strategy, aimed at reviving X’s faltering ad business following the departure of former CEO Linda Yaccarino. Musk acknowledged the platform’s focus had so far been on improving Grok’s intelligence and accuracy but said it was now time to explore how to fund the resource-heavy AI.

“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. “So we’ll turn our attention to how do we pay for those expensive GPUs.”

Musk revealed that advertisers will soon be able to pay to have their products or services suggested directly in Grok’s answers, especially when users are seeking solutions.

“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.

The company also plans to leverage technology developed by Musk’s AI startup, xAI, to improve ad targeting across the X platform. xAI acquired X earlier this year in a $45 billion deal, consolidating Musk’s AI ambitions under one umbrella.

The integration of ads into Grok represents X’s latest attempt to stabilize its business model and explore new revenue streams in the era of AI-enhanced social media.