X is a new launch of the Grok AI chatbot, and with AI it can increase your revenue. The platform’s recent decline in ad revenue and rising development costs have pushed it to explore new strategies, and Grok 2 seems to be a central part of that plan.
X is now prominently promoting this upgraded AI tool, hoping to attract more users to its X Premium service.
Grok 2 Premium X earns money for its users
The update’s importance is that Grok 2 was made available to all users earlier this week. This latest release brings new features such as image rendering powered by Flux and several functional improvements designed to enhance the user experience with X’s AI tools. Grok 2 is now part of the X Premium package and offers subscribers enhanced capabilities that integrate real-time information on the platform. The goal is clear: To make X Premium more attractive and increase subscriptions, thus reducing the platform’s reliance on ad revenue. It looks like a way for both the user and the platform to win.
Grok 2 also opens up new opportunities for users to monetize their activity on X. Here are some ways users can earn money with Grok 2:
- Sponsored content creation: Use Grok 2 to create high-quality content that attracts sponsorships.
- AI-driven product recommendations: Partner with brands to provide targeted product recommendations using Grok 2’s AI capabilities.
- Custom AI services: Offer personalized AI services to your followers, leveraging Grok 2’s advanced features.
- Engagement monetization: Increase follower engagement through Grok 2’s interactive tools, boosting ad revenue from higher traffic.
With X premium account, Grok 2 will highlight your account as you produce content.
A summary of Grok 2. The platform introduced two new models, Grok 2 and Grok 2 mini, each designed to meet different user needs. Grok 2 is a more powerful model with enhanced capabilities in both text and image understanding. Designed to be more intuitive and versatile than its predecessor, Grok 2 is useful for a wide range of tasks, from answering questions to collaborating on writing and coding projects.
Grok 2 mini, on the other hand, offers a balance between speed and answer quality, making it a more lightweight option for users who need quick responses. According to xAI, the company behind the tool, Grok 2 outperforms competitors like Claude and GPT-4 in terms of its overall Elo score on the LMSYS leaderboard, making it a strong contender in the AI market.
X is banking on Grok 2 to drive sign-ups for X Premium, with the hope that a larger subscriber base will help offset declining ad revenue. This strategy is critical for the platform, as it faces financial challenges and increasing competition in the social media space.
X’s financial struggles
The launch of Grok 2 comes at a time when X is grappling with a series of financial hurdles. Since Elon Musk took over the platform in 2022, X’s ad revenues have fallen by nearly 70%. The platform is also losing users, with 5 million fewer active users in Europe alone last year. In addition, X has lawsuits with advertisers. In addition to these challenges, X faces regulatory pressure, including fines and bans in several regions for refusing to comply with certain government demands. On top of these issues, X is burdened with high debt servicing costs from loans Musk took out to purchase the platform.
Of course, not only bad things happen. Despite the challenges, there may be a silver lining for X. The xAI project, which developed Grok 2, has secured $6 billion in funding from investors, including Saudi Prince Alwaleed bin Talal, who is keen on investing in AI projects. This influx of capital could provide X with a much-needed financial lifeline, especially since xAI relies on data from X to power its systems.
While it’s not entirely clear how this funding might be funneled into X, it’s possible that Musk could leverage this relationship to support the platform. However, X will eventually need to stand on its own as a sustainable business. Musk has acknowledged this, but it remains to be seen whether his approach to content moderation, which prioritizes free speech, can coexist with the demands of advertisers for brand safety and assurance.
Musk’s initial plan for X involved maximizing subscriptions through X Premium, with the hope that it would eventually account for 50% of the platform’s revenue. While it’s not close to that goal yet, introducing Grok 2 is a step in that direction. The question remains whether this new tool will be enough to attract the number of subscribers needed to reduce X’s reliance on ad revenue.
Featured image credit: xAI
