Elon Musk Announces X’s Plan to Integrate Ads into Grok AI Responses
Elon Musk, the owner of X (formerly Twitter), has revealed plans to introduce advertisements directly into the responses generated by Grok, the platform’s artificial intelligence chatbot. The announcement was made during a live discussion with advertisers on Wednesday, according to a report by the Financial Times.
This strategic move is intended to bolster X’s advertising business, which has reportedly faced challenges following the departure of former CEO Linda Yaccarino. Musk emphasized the development of Grok, stating, “Our focus thus far has just been on making Grok the smartest, most accurate AI in the world and I think we’ve largely succeeded in that,” during the broadcast. He further explained the financial necessity, saying, “So we’ll turn our attention to how do we pay for those expensive GPUs.”
Musk elaborated on the advertising model, informing advertisers that X will provide opportunities for marketers to pay for placement within Grok’s suggestions. “If a user’s trying to solve a problem [by asking Grok], then advertising the specific solution would be ideal at that point,” he articulated.
In addition to this, the billionaire entrepreneur plans to leverage technology from xAI, his AI startup, to enhance the precision of ad targeting across the social media network. It is noted that xAI acquired X earlier this year in a transaction valued at $45 billion.
