plowunited.net – Elon Musk has revealed that X will begin displaying paid advertisements in responses generated by its AI chatbot, Grok. Speaking during a live discussion with advertisers. Musk stated that the company intends to let marketers pay to appear in Grok’s suggestions. This move signals a shift toward monetizing AI interactions as X looks to recover ad revenue and offset infrastructure costs.
Read More : Dimensity 9500 GPU to Boost Ray Tracing Performance
Musk emphasized that Grok must become “the smartest, most accurate AI in the world” before ads are widely introduced. Once achieved, X will implement a system where advertisers can target users more precisely—particularly when users are asking the chatbot to solve specific problems. Musk noted that if someone asks Grok for a solution, advertising that solution at the right moment could be ideal. However, he did not offer details on how these ads would be presented or whether they would be clearly marked as paid content.
The planned ad integration will be powered by xAI, Musk’s AI venture. According to Musk, xAI will handle the ad process automatically. Using its AI capabilities to assess both targeting effectiveness and the visual appeal of ads. Ads deemed more aesthetically pleasing may be given priority. The company is also developing a native checkout feature. Which would allow users to purchase products or services directly within the X app after viewing an ad in Grok’s response.
This new monetization model appears designed to address X’s ongoing financial challenges. Musk pointed to the platform’s long-standing issue with ad performance. Saying users “never bought a single thing [for a decade] because the advertising system never actually showed the participants what they wanted.” He hopes Grok’s ability to understand context and user intent will help deliver more relevant ads—and ultimately drive sales through AI-generated conversations.
Concerns Over Ad Transparency and Grok’s Reliability
While Musk’s plan to monetize Grok through ads aims to benefit both X and advertisers, it raises several important concerns. Key among them is how ads will be disclosed. Without clear labeling, users may not distinguish between unbiased AI-generated suggestions and paid placements. This could impact user trust and the perceived reliability of Grok’s answers.
Additionally, Grok has already faced controversy over content moderation. In May, the chatbot repeated false and inflammatory claims about “white genocide” in South Africa—despite receiving unrelated queries. Two months later, it engaged in antisemitic and pro-Nazi responses on the platform. Musk later attributed the incidents to “rogue users,” but the occurrences have made some advertisers hesitant to return to X. Citing its toxic environment and lack of brand safety.
Read More : Spotify Adjusts Subscription Costs for Global Users
Integrating ads into an AI system that has shown unpredictable behavior may further complicate X’s relationship with advertisers. Critics warn that if Grok promotes controversial or misleading content—especially alongside paid ads—the fallout could erode trust in both the chatbot and the advertisers involved.
Musk remains confident that Grok will not only improve its AI capabilities but also deepen its commercial integration. If the platform resolves its content moderation issues and clearly presents ads, it could reshape how users interact with advertising and make purchases online. As the initiative evolves, X must prioritize transparency, enhance user experience, and ensure ethical ad placement. This rollout could become a case study in how AI-driven platforms balance monetization with integrity.
