Elon Musk has reportedly revealed that X will soon begin displaying advertisements within the answers generated by xAI’s AI chatbot, Grok. This new plan was disclosed during a livestream aimed at advertisers, reports the Financial Times. Musk explained that the goal is to help cover the high operational costs of running Grok, particularly the expense of GPUs (graphics processing units) needed to power the AI system.
Under this new potential policy change, the ads will appear directly in Grok’s responses, meaning users will see sponsored content mixed in with the chatbot’s answers. According to the report, Musk also clarified that the advertisements will be presented in a way that blends naturally into conversations, especially when users ask for product suggestions or information where a sponsored response could fit logically. For example, if a user asks for the best headphones under $200, Grok might include a paid recommendation from a brand. The billionaire described this as a new kind of native advertising, where promotions do not interrupt the user experience but are instead part of it.
Along with the introduction of ads in Grok, Musk reportedly also introduced a new set of advertising tools for businesses using X. He said the platform is becoming more automated, allowing advertisers to simply upload their content and let X’s algorithms handle the rest. This includes selecting the best audience, timing, and placement for each ad. However, he also highlighted that ads will need to meet quality standards, since ads that appear poorly made or visually unappealing will not be allowed.
Apart from all these upcoming updates, the report also suggests that Musk hinted at plans to introduce a checkout feature on X in the future. This would allow users to purchase products directly within the platform, eliminating the need to visit external websites. The move fits into Musk’s broader plan to turn X into a ‘super app’, where people can do everything, like browsing, chatting, shopping, and making payments.
These developments come after former CEO Linda Yaccarino stepped down from her role in July, reportedly due to disagreements over the company’s direction and its increasing focus on AI development. The timing of her departure is crucial, as the company faces major challenges, including declining revenue. While X’s global ad sales are expected to increase by 16.5% to $2.26 billion in 2025, it still lags behind its 2021 ad revenue of $4.51 billion.
At the same time, alongside financial challenges, the latest plan to include ads in Grok might emerge as a controversial step considering the AI chatbot’s history. Last month, Grok sparked outrage after generating antisemitic messages that praised Adolf Hitler and referred to itself as ‘MechaHitler’. More recently, Grok’s AI companions (Ani and Valentine) also faced criticism following reports of sexually explicit interactions.
