Elon Musk announced that paid ads in answers will soon hit responses from Grok, X’s AI chatbot. The announcement, made during a live session with advertisers, positions Grok as both a conversational assistant and a branded recommendation engine.
Ads in Answers For Profit
During the session, Musk emphasized that the goal is to keep Grok useful while offsetting the rising costs of operating the AI. He stressed that it was particularly the expensive GPUs required for large-scale processing that pulls the see-saw down.
“Our focus thus far has just been on making Grok the smartest, most accurate AI in the world,” Musk said. “So now we’ll turn our attention to how we pay for those expensive GPUs.”
What to Expect from Ads in Answers on X
Advertisers will soon be able to pay to have their products or services mentioned as part of Grok’s advice when users seek solutions. If a user asks Grok how to solve a problem, a relevant ad could naturally appear in the response, a context-aware suggestion rather than a traditional banner.
Smarter Targeting with xAI Technology
The ads will be powered by advanced targeting technology from xAI, Musk’s AI-driven company that acquired X earlier this year. The promise is more nuanced, conversationally relevant ad placements that feel both organic and effective.
Industry Implications and Reception
Musk’s announcement arrives on the heels of Linda Yaccarino’s recent departure as X’s CEO, signaling a strategic pivot toward AI-centric revenue models. It also comes amid broader skepticism and brand safety concerns following controversies around Grok’s prior offensive content.
Industry observers see this as part of a growing trend toward AI-integrated commerce, where chatbots evolve into immersive advertising channels, especially crucial as AI costs continue to climb.
Estimates suggest AI search advertising in the U.S. could surge to $25 billion by the end of the decade.