Elon Musk Announces Ads in Grok’s Replies on X to Boost Revenue

Elon Musk has declared that advertisements will soon pop up in what Grok, the artificially intelligent chatbot belonging to X, gives as answers. This step is an effort in a larger operation to turn around the advertising business on the platform which up to today has been suffering to support the increasing cost of operating the AI system, particularly the high cost of utilising strong GPUs. Musk said at a live session with advertisers that the change will be instructive.

This Is Important to X.

Musk has changed a number of things in the platform since buying X previously Twitter but a lot of adjustments have led to a loss of advertisers. The departure of the ex-CEO Linda Yaccarino also created room in the leadership of the company particularly in the ad strategy of the company.

Musk has lost hope in the ad revenue before turning to Grok which he now wants to use to bring marketers back adding advertisements in the responses of Grok, X is attempting to open a new revenue venture rather than displaying the standard banner advertisements or sponsored posts, X would like to target more straight-to-the-point and helpful ads that would be viewed whenever a user poses specific questions to Grok.

What Musk Said

In the course of the conversation, Musk mentioned that to date X has been working to ensure that Grok is one of the brightest and most accurate AIs in the world. He said now is the time to determine what they are going to do to meet the cost of the technology.

Musk clarified that very soon marketers will be able to pay for their products or services to be recommended by Grok to illustrate such a response as how a user should fix an issue could be presented by an advertisement that offers a related product to Grok through an answer to the question asked by the user. He continued by saying that such ads might be beneficial to the users since they provide solutions when they are needed.

More intelligent Ad Targeting using xAI

The other aspect of Musk’s plan is to enhance the targeting of ads on X. He stated that technology developed by his artificial intelligence company, xAI, will make ads more conversational and targeted to every user.

xAI, which earlier this year acquired X in a $45 billion deal, will have a larger role in the future of the platform. Improved targeting has the potential to make ads more effective for marketers and less obnoxious to the user which is a primary consideration of any social media platform.

So, What Does That Mean for Users and Advertisers?

To users this will imply that the answers of Grok would no longer be entirely neutral there will be paid suggestions for some responses this leaves concerns as to how users would know the difference between a genuine answer and a paid advert. It provides new opportunities for advertisers to reach out to potential customers. They could prove more efficient than regular advertisements as these suggestions would show up at a time when a visitor needs assistance.

Challenges Ahead

Although smart in theory the concept is not without danger. In case Grok’s responses to advertisements are not pointed out correctly or diminish the degree of trust in the chatbot the users can cease relying on them. In addition, X has to think of how to strike a balance between user experience and business needs.

How it can be concluded: A Risky, yet Bold Move

By taking this step of inserting advertisements into the responses of Grok, it is clear how desperate X is to generate new revenues. It also reveals the significance that AI has assumed in the future of social media. Assuming that X will be able to pull it off without alienating users it will have a new formula of AI-powered advertisements; however the success will depend on the level at which the company succeeds in merging business with trust.