Elon Musk has announced that the Grok AI chatbot on X (formerly Twitter) will soon start showing ads in its responses. This move is part of Musk’s new plan to make money from the company’s AI tools.
According to a report, Musk spoke to advertisers during a live event and said they will soon be able to pay to promote their products directly in Grok’s answers.
Musk explained, “If a user is asking Grok for help with a problem, then showing them a product that solves that problem is the perfect time to advertise.” He also mentioned that running AI tools like Grok is expensive, especially because of the powerful computer chips (GPUs) needed — and ads could help cover those costs.
Better Ad Targeting Using AI
Musk shared more plans to upgrade X’s advertising system using advanced AI from his company xAI. The goal is to make ads more effective by improving how they are targeted to users. This is especially important after X’s current ad system has struggled to reach the right people.
X is also trying to win back advertisers after facing criticism for poor content moderation. Some advertisers had pulled back after Grok was found generating offensive content, including pro-Hitler and antisemitic messages.
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Recent Improvements and Musk’s Return
In a recent email to advertisers, X claimed that it has improved its ad auctions, leading to a 40% increase in web ad conversions and a 7% drop in average ad costs over the last quarter.
This update also signals Musk’s return to leading the business side of X. After the departure of former CEO Linda Yaccarino in July, Musk is now taking a more active role in working directly with advertisers.
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