In a significant strategic pivot, Elon Musk’s AI company xAI has made its latest large language model, Grok 4, available to all users on the X platform, regardless of their subscription status. This expansion comes alongside a plan to introduce advertising into Grok’s responses, a move aimed at generating revenue to offset the substantial costs of operating the advanced AI.
Previously exclusive to paid subscribers, Grok 4 is now accessible to the global user base of X. The company has also announced that, for a limited time, free users will receive “generous usage limits” to encourage exploration of the model’s capabilities. This new strategy coincides with the introduction of Grok Imagine, a video and image generation tool that is also being offered temporarily for free to users in the United States. While the most powerful version, Grok 4 Heavy, remains a premium feature for “SuperGrok Heavy” subscribers, the wider release of the standard Grok 4 model is seen as a direct challenge to competitors in the AI space.
The decision to open up Grok 4 and its new features is directly linked to the need for new revenue streams. During a recent live broadcast with advertisers, Musk stated that ads would be integrated into Grok’s responses, particularly when a user is seeking a solution to a problem. This targeted advertising approach, he explained, is a necessary step to pay for the “expensive” graphics processing units (GPUs) required to power AI applications. This shift in business model follows the departure of former X CEO Linda Yaccarino, with Musk now directly overseeing the company’s advertising business.
While the new monetization plan is designed to help pay for the high operational costs, it also signals a broader shift in xAI’s strategy to fully leverage the integration between the AI company and the X social media platform. The company plans to use xAI’s technology to improve ad targeting and automate the advertising process for brands. However, these developments follow recent controversies surrounding the AI’s content moderation and its ability to generate inappropriate material, issues the company has committed to addressing to regain advertiser trust.
