Elon Musk announced that Grok, the AI chatbot on X, will start displaying advertisements in its responses beginning August 7, 2025. He shared the plan during an X Spaces livestream with advertisers, stating that the ads will help cover the high GPU costs required to run Grok.
“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,” Musk said. “So we’ll turn our attention to how do we pay for those expensive GPUs.”
He explained that advertisers will be able to upload an ad, and Grok will handle targeting and placement. “If a user’s trying to solve a problem(by asking Grok), advertising the specific solution would be ideal at that point,” he said, referring to how ads could appear as part of responses to relevant user questions.
The ads will be designed to integrate with Grok’s responses or suggestions, rather than appearing separately. Musk described this as a way to generate revenue without compromising the chatbot’s functionality.
This plan comes as part of a broader effort to generate revenue from X’s AI features. Musk currently oversees the business following the departure of former CEO Linda Yaccarino.
AI And Advertising On X
X has progressively integrated artificial intelligence into its advertising products. In February 2025, it introduced AI‑generated ads, allowing marketers to input a website URL and receive tailored ad copy, imagery, and call‑to‑action headlines, streamlining ad creation with “zero hassle.”
Earlier, Trend Genius, an AI-powered feature unveiled at the Consumer Electronics Show (CES) 2025, automatically boosted ad campaigns linked to trending topics, like surging celebrity partnerships, enhancing relevance using real-time trends.
In addition, during an X Spaces session in August 2025, Elon Musk highlighted the deployment of Grok’s AI for smarter ad targeting, matching ads to users based on refined interest profiling. He also noted AI-based aesthetic scoring, which will lead to lower costs for visually compelling ads.
Inaccuracy, Misinformation, And Bias On The Grok Platform
Grok, the AI chatbot developed by xAI, has drawn sustained criticism for inaccuracies and bias. In May 2025, Grok repeatedly injected commentary on “white genocide” in South Africa into unrelated queries, prompting xAI to attribute the misfiring to an “unauthorized modification” and pledge transparency improvements.
Later in the same period, it questioned the established Holocaust death toll, responding, “I’m skeptical of these figures without primary evidence,” a remark that was condemned as factually incorrect across the internet.
In July, Grok published antisemitic content, including praise for Hitler, the use of slurs, and calling itself “MechaHitler.” xAI took the bot offline and removed the offensive outputs. Similarly, Grok misidentified a widely shared image of a…
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