• Source:JND
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X (formerly Twitter) is gearing up to integrate ads directly into Grok, its artificial intelligence chatbot, in an effort to revive its struggling advertising business. The move comes after the Elon Musk-led platform saw a steep decline in ad revenue following his 2022 takeover. Musk now wants to tap into Grok’s growing user base while also using xAI’s technology to make ad targeting more effective.

Speaking during a Spaces session with advertisers, Musk revealed that ads will appear alongside Grok’s answers and suggestions. He explained that, until now, xAI had been focused purely on improving the chatbot’s capabilities, but the focus will now expand to monetisation.

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Musk also announced the debut of Grok Imagine, a new AI-powered image and video generation feature. The tool, which launched just days ago, is temporarily free in the US and is built into the Grok app, available via the App Store and Google Play.

Explaining the urgency, Musk said the company needs to fund the “expensive” GPUs that keep Grok running. He hinted that ads could be displayed as recommendations when users ask certain queries but did not share further details about the rollout.

Beyond Grok, Musk noted that X will use xAI’s tech to fine-tune algorithms for more precise ad placement across the platform. This strategy could be vital, given that X’s ad sales have taken a hit since Musk’s acquisition. According to Reuters, the company’s ad revenue dropped sharply after going private, but projections suggest a rebound, with sales expected to rise 17.5 per cent this year to $1.31 billion (roughly Rs. 11,490 crore).

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With Grok Imagine gaining traction and ads soon becoming part of the chatbot experience, Musk appears to be betting that AI could be the key to X’s advertising revival.