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X’s struggling ad business can’t be solved by Grok ads alone

The news: Elon Musk told advertisers they will soon be able to pay for placement in Grok’s recommended answers to help fund the “expensive GPUs” powering the AI. This marks Musk’s first major public pitch to advertisers since Linda Yaccarino’s departure as CEO.

Grok, X’s in-house AI assistant, is becoming Elon Musk’s centerpiece for reviving the platform’s ad business and luring marketers back. X will start integrating ads directly into Grok’s answers, allowing brands to appear at the exact moment users seek solutions, according to Search Engine Land. The AI—built by Musk’s startup xAI—is positioned as a “high-intent” channel for advertisers, promising better targeting and context-driven placements.

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