X is rolling out ads inside its AI chatbot Grok’s answers, Elon Musk confirmed Wednesday.
The new ad format will let marketers pay to appear in Grok’s suggestions, aiming to boost X’s shaky advertising revenue after ex-CEO Linda Yaccarino left.
Musk said the focus has so far been on building Grok’s smarts and accuracy, but now it’s about funding expensive GPU costs.
He told advertisers,
“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.”
“So we’ll turn our attention to how do we pay for those expensive GPUs.”
Musk added the AI will deliver ads that address whatever problem users ask Grok about.
“If a user’s trying to solve a problem [by asking Grok], then advertising the specific solution would be ideal at that point,” he said.
The push to monetize Grok comes as xAI, Musk’s AI startup that bought X for $45 billion earlier this year, will bring its tech to improve ad targeting on the platform.