When Elon Musk took a chance on AI by launching Grok, he aimed to keep X (formerly Twitter) at the forefront of digital innovation. Now he wants to turn it into a money-making machine. Musk recently revealed that advertisers will soon be able to place sponsored suggestions directly within Grok’s chatbot responses. This blend of marketing with chat is an attempt to revive X’s ad revenue. But does this move solve a financial problem, or create a brand identity crisis?
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Grok Is About to Be a Tool for Advertisers Too
Grok, the AI chatbot created by Elon Musk’s xAI, is already built into X and meant to feel like a smart, helpful companion for users. Now it’s about to become a tool for advertisers too. Soon, companies will be able to pay to insert product suggestions, promotions, or brand mentions directly into Grok’s answers.
The goal is to make ads feel less like ads and more like part of the conversation. Musk says the system for buying ads has already become 40% more efficient since June, thanks to better automation and targeting. If it works as planned, Grok could become a powerful way for X to earn more money, without driving users away.
Can This Fix X’s Advertising Woes?
X has been struggling to keep its ad business strong. Leadership changes, including the exit of CEO Linda Yaccarino, and growing competition from tech giants like OpenAI, Google (GOOGL), and Meta (META) have made things even harder. The move to showcase Grok’s AI abilities is a way for X to show it still wants to be taken seriously in the tech space.
If advertisers believe their promotions will reach users in a smart, relevant way through Grok, it could help X rebuild trust. Features like in-app checkout could also make it easier for users to buy products without leaving the platform, boosting sales.
However, not everyone is convinced. Grok has a history of generating offensive content, including some antisemitic messages. That has made some brands nervous. Advertisers usually want platforms that feel safe and predictable, not ones that carry extra risk. This latest move may help X evolve, but it also brings new challenges.
What Users Are Likely to Feel
Imagine asking Grok for book recommendations and getting a sponsored novel in the reply. Users might appreciate the convenience, or they might feel the chatbot has lost authenticity. The novelty of AI quickly wears off if it starts feeling too scripted or profit-driven. Given Grok’s branding as an “unfiltered” and occasionally “rebellious” AI, pressure is high to keep the tone sharp without descending into spam.
If users sense that Grok is prioritizing ad delivery over helpful answers, trust could erode fast. That erosion may be subtle, but once loyalty falters, regaining it could take a fair amount of effort.
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