X, the platform formerly known as Twitter, is set to introduce advertisements within its AI chatbot Grok. Under the leadership of Elon Musk, the company aims to boost its advertising revenue, which has experienced a significant decline since Musk acquired the social media entity. Musk has also indicated that X will utilize the resources of its parent company, xAI, to enhance the effectiveness of targeted ads. Following its recent launch, the Grok Imagine service for generating videos and images is temporarily offered free of charge in the United States.
Elon Musk Plans To Fund “Expensive” GPUs With Ad Revenue
During a recent Spaces discussion with advertisers on X, Musk revealed that advertisements will be integrated into Grok’s responses and suggestions, forming part of a strategy to monetize the chatbot’s features. He noted that xAI had primarily focused on improving the AI, but the emphasis will now shift towards monetization.
Musk also introduced Grok Imagine, a tool for creating images and videos through AI, which is presently available for free in the US. This feature is accessible through the Grok application, which can be downloaded from both the App Store and Google Play Store.
The CEO emphasized that the platform needs to generate revenue to cover the costs of the “expensive” GPUs used by Grok. He mentioned that ads might appear as recommendations based on specific queries made by users. However, detailed information about the monetization plan was not provided. Additionally, Musk stated that X will adopt xAI’s technology to enhance its algorithms for delivering targeted advertising on the platform.
This development is significant given the steep decline in ad revenue experienced by the social media site since Musk’s acquisition of Twitter in October 2022, when it transitioned to a private company. According to a recent report by Reuters, projections indicate a potential recovery, with ad sales expected to increase by 17.5 percent, reaching approximately $1.31 billion (around Rs. 11,490 crore).
