Elon Musk Announces Plans for Ads in X’s AI Chatbot Grok to Revitalize Struggling Ad Business

In a live discussion on Wednesday, Elon Musk, CEO of X, announced plans to integrate advertisements within Grok’s responses. This shift aims to bolster X’s advertising business following the departure of former CEO Linda Yaccarino, as reported by financial media outlets.

During the broadcast, Musk explained, “Our primary focus has been on making Grok the most intelligent and accurate AI in existence, and I believe we have largely achieved that milestone. Now, we need to address the substantial costs associated with powerful GPUs.”

Musk proposed a strategy where marketers could pay for their brands to appear within suggestions generated by the AI chatbot. He further elaborated, “If a user is seeking a solution to a problem through Grok, presenting an appropriate advertisement at that juncture would be optimal.”

In addition, Musk revealed intentions to leverage technology from his AI startup, xAI, to enhance targeted advertising on the social network. Notably, xAI acquired X earlier this year in a deal worth $45 billion.