Despite having its largest-ever month for subscription revenue in November, subscriptions have not been the main source of revenue for X, formerly Twitter, with advertising being the primary driver. However, the future of X's ad-supported model is unclear as Musk has been alienating advertisers. To sustain, X may need a larger number of users to subscribe to Premium+ for Grok to compensate for the loss of ad revenue.
Key takeaways:
- Elon Musk's xAI startup has begun rolling out its AI chatbot, Grok, to Premium+ subscribers on X's platform. The rollout to all U.S. Premium+ subscribers is now complete, with plans to expand to all English language users in about a week and Japanese users to follow.
- Musk has stated that he hopes to bring Grok to all languages by early 2024. However, his timelines have been known to be inaccurate in the past.
- Grok is part of X's top-tier subscription offering, the $16 per month Premium+. This subscription also includes other features such as no advertisements, boosted replies, and access to Media Studio, among others.
- Despite a record month for subscription revenue in November, subscriptions have not been the main source of revenue for X, formerly Twitter. Advertising has been the main source, but the future of this is uncertain as Musk has been alienating advertisers.