US EditionMusk Says Ads in Grok Will Fund xAI’s AI Costs
SAN FRANCISCO COUNTY, CALIFORNIA, AUG 7 – Elon Musk aims to revitalize X’s advertising by integrating AI-driven, targeted ads in Grok chatbot responses to offset high AI infrastructure costs and boost revenue by 16.5%, analysts say.
- On August 7, 2025, Elon Musk said during a live discussion that marketers could pay to appear in suggestions from Grok, xAI’s chatbot.
- Amid advertiser losses after controversies, in recent months, X, platform formerly known as Twitter, sought to re-engage advertisers following Linda Yaccarino's departure.
- To fund Grok's expensive GPUs, Musk highlighted that ads could help cover the costly AI chips powering Grok, during a Wednesday livestream on X.
- Within 10-15 minutes of launching an ad, Grok adjusts targeting to maximize relevance, and advertisers can input goals for one-click campaign setup and optimization.
- Looking ahead, the integration will shift X’s model to a performance-driven ecosystem focused on conversions and ROI, making it more competitive with Meta.
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15 Articles
X's advertising business doesn't finish taking off, so Elon Musk has revealed to advertisers in a leak, that advertising reaches Grok.
Elon Musk says X plans to introduce ads to Grok
Ads could soon come to xAI's chatbot.illustration by Jonathan Raa/NurPhoto via Getty ImagesElon Musk said he plans to introduce ads in xAI's chatbot Grok that appear alongside its answers.He said Wednesday that ads in Grok could provide solutions related to users' queries.The xAI CEO added that advertising could help the company pay for the costly AI chips powering Grok.Elon Musk says he is planning to introduce ads on xAI's chatbot Grok.The bil…
Elon Musk outlines AI-led Grok future for advertising on X
With Linda Yaccarino out of the picture, Elon Musk is once again acting as X’s main conduit to marketers. He made that clear on Wednesday (August 6) when he hosted a live Spaces alongside senior engineering, product and brand safety staff, who all tried to sketch out the platform’s future. At the center of it all is Grok, the in-house AI assistant Musk sees as key to X’s next act — and appeal to marketers. The hope is that Grok will eventually …
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