X Platform Gets a New Monetization Play—Advertising Inside AI Answers
During a live chat with advertisers on Wednesday, Elon Musk dropped the news that X will be sprinkling ads right into the responses of its AI chatbot, Grok. The Financial Times reported that this tweak is aimed at boosting X’s struggling ad venture after the exit of ex‑CEO Linda Yaccarino.
From AI Mastery to Cash Flow
Musk opened by bragging that Grok is now “the smartest, most accurate AI in the world” – a claim he says they’ve largely nailed. “We had our eyes on perfection, but now we’re looking at the hefty cost of GPUs,” he explained, hinting that monetizing the AI will help cover those hardware bills.
Ads That Answer Questions
The billionaire told advertisers that marketing teams will soon be able to pay to get their products suggested in Grok’s replies. “When a user is stuck on a problem and asks Grok, popping an ad for the exact solution is, well, perfect timing,” he said.
Leveraging xAI for Targeting Precision
Elon also teased that X will harness technology from his AI venture, xAI, to sharpen ad targeting on the social network. The same xAI company, which bought into X last year for a whopping $45 billion, will likely bring sophisticated machine‑learning tools to the table.
Bottom Line
- Grok’s AI answers will now house ads.
- Targeted ads aim to pop up exactly when users need them.
- xAI’s tech will give advertisers better precision.
- All to help X lift its ad revenue muscles.