Elon Musk's plan to increase X's earnings, Grok's answers will now show ads

X (formerly Twitter) is now preparing to show ads to users in its AI chatbot Grok. The goal of Elon Musk's company is to increase revenue, which reportedly dropped significantly after Twitter was made private. Additionally, Musk stated that X will utilize the technology of its parent company, xAI, to enhance targeted advertising. Recently, a video and image creation service called Grok Imagine was launched, currently free in the US.

In a Spaces discussion, Musk mentioned that the company will display ads alongside Grok's answers and suggestions to enable monetization of the AI chatbot. Until now, xAI was focused solely on improving Grok, but now the emphasis will also be on generating income.

Musk also announced the launch of Grok Imagine, an AI tool that creates photos and videos. This service is available for free in the US and has been integrated into the Grok app, which can be downloaded from the App Store and Google Play.

According to Musk, this move is necessary to cover the costs of the expensive GPUs required to run Grok. He indicated that ads could also appear as suggestions in response to user queries, though he provided limited details about the overall monetization strategy. Additionally, algorithms will be optimized with xAI's technology to better target ads on the X platform.

A Reuters report highlights the importance of this development, noting that the company's ad revenue has seen a sharp decline since Musk acquired Twitter and took it private in October 2022. However, the report suggests that X's ad sales could now increase by 17.5%, reaching approximately $1.31 billion (about Rs 11,490 crores).