ultimateimp – Elon Musk’s company X, formerly known as Twitter, has announced plans to introduce ads within its Grok AI chatbot. The move is part of a broader strategy to recover and grow advertising revenue. Which has significantly declined since Musk took the platform private in October 2022.
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During a Spaces session with advertisers, Musk shared that ads will soon appear in Grok’s answers and suggestions. These targeted placements are intended to monetise Grok’s capabilities while also supporting the costly infrastructure that powers the AI system. He noted that the GPUs required for Grok’s operation are expensive. Making ad revenue essential to sustain and expand the tool’s services.
Grok, developed by xAI—X’s parent company—has so far focused purely on performance and user experience. Musk confirmed that the priority will now shift toward monetisation, starting with embedded ads. Although specific details about the rollout timeline or ad formats are still unclear, Musk hinted that ads may appear in response to user prompts and queries, helping to preserve the interactive nature of the chatbot while still generating revenue.
This change reflects a wider effort to make X a profitable platform again, especially as ad revenue continues to lag behind pre-acquisition levels. A recent Reuters report highlighted the financial pressure on the company, noting a significant drop in advertiser spending since the acquisition.
Despite these challenges, Musk remains optimistic. He stated that targeted advertising, powered by xAI’s advancements in machine learning, will play a central role in reviving ad sales. The company plans to optimise its algorithms to serve more relevant content across the platform.
Grok Imagine Launches Free in US as X Expands AI Services
Alongside ad monetisation plans, Elon Musk also announced the launch of Grok Imagine, a new AI-powered image and video generation tool. Currently, the service is available for free to users in the United States. Grok Imagine integrates directly with the Grok app, available on both the App Store and Google Play. The tool allows users to generate high-quality visuals and short-form videos using AI, enhancing the capabilities of the chatbot beyond text-based interactions.
Musk introduced the service as part of a broader push to expand X’s AI ecosystem. Grok Imagine showcases xAI’s growing portfolio and is likely intended to draw more users into the platform’s premium features. However, its free availability may be temporary, as the company explores monetisation opportunities and gauges user interest.
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With rising GPU costs and expanding infrastructure demands, Musk emphasised the importance of generating revenue through ads and AI services. The company aims to balance user experience with sustainable monetisation, a challenge many platforms face when scaling advanced AI offerings.
Looking ahead, X plans to continue leveraging xAI’s technology to enhance user targeting, refine recommendation systems, and support content creation. The company is betting on its AI investments to rebuild advertiser trust and reclaim lost revenue. If successful, these steps could mark a turning point for X as it transitions from social media platform to AI-powered digital ecosystem.
