Elon Musk, owner of X, announced during a live discussion with advertisers on Wednesday that the platform plans to introduce ads in Grok’s responses. This move aims to bolster X’s struggling advertising business following the departure of former CEO Linda Yaccarino.
Musk stated that the focus so far has been on making Grok the smartest and most accurate AI in the world, a goal he believes has largely been achieved. Now, the company will shift its attention to monetizing the AI to cover the high costs of GPU operations.
Advertisers will have the opportunity to pay for their products or services to appear in Grok’s responses. Musk explained that if a user seeks a solution to a problem through Grok, presenting a relevant ad at that moment would be highly effective.
Additionally, Musk plans to leverage technology from his AI startup, xAI, to enhance ad targeting on X. Earlier this year, xAI acquired X for $45 billion, further integrating AI capabilities into the platform.