Elon Musk's AI chatbot, Grok, developed by xAI startup, began its rollout to Premium+ subscribers on X's platform. Musk stated the completion of Grok's rollout to all U.S. Premium+ subscribers, with plans to expand to English language users and eventually to all languages by early 2024.
Despite Musk's noted tendency for delayed launches, Grok's arrival occurred slightly beyond the initially estimated timeline. While this AI chatbot is part of X's top-tier subscription, the $16 per month Premium+ offering, its success in driving subscription revenue remains uncertain. This higher-tier subscription grants users various benefits, such as ad-free timelines, boosted replies, and access to additional features like ID verification and Media Studio.
Although subscriptions have not been the primary revenue driver for X (formerly Twitter), recent figures suggest a rise in subscription revenue, hitting $6.2 million in net revenue in November, post-app store fees, according to estimates from Apptopia. However, this amount is notably lower than what other platforms like Snapchat have generated through in-app subscriptions.
With over 500 million monthly active users, X has substantial room for subscription growth. However, the platform faces challenges in transitioning from an ad-supported model, especially amid concerns over content moderation and the departure of significant advertisers.
The success of Grok in incentivizing Premium+ subscriptions and potentially mitigating ad revenue losses will play a crucial role in X's future sustainability as it navigates this transition.