Musk Admits Grok Bot Costs Outpace Revenue as Demand Surges
(MENAFN) Elon Musk has acknowledged that xAI’s Grok chatbot costs far more to run than it earns, calling its operating expense “unsustainably high” against the revenue it brings in. The admission, made Sunday, exposes the financial strain on AI companies as demand for their services climbs.
“The cost of serving Grok Bot was unsustainably high relative to revenue,” Musk said in a reply on the US social media platform X. A user had asked whether xAI could reset the service’s weekly usage allowance.
The user said many subscribers had burned through their Grok Bot allotment far faster than usual during the week.
Musk gave no figures for operating costs or revenue. He also did not say whether usage limits would be changed or reset.
xAI rolled out Grok Bot in early beta in August. It is an AI agent that completes tasks across apps and online services using its own virtual computer. Unlike a conventional chatbot, it can carry out multi-step tasks and keep working in the background.
Access comes through several paid SuperGrok and Cursor subscription plans. Usage is allocated separately from subscribers’ other Grok and Cursor allowances.
“The cost of serving Grok Bot was unsustainably high relative to revenue,” Musk said in a reply on the US social media platform X. A user had asked whether xAI could reset the service’s weekly usage allowance.
The user said many subscribers had burned through their Grok Bot allotment far faster than usual during the week.
Musk gave no figures for operating costs or revenue. He also did not say whether usage limits would be changed or reset.
xAI rolled out Grok Bot in early beta in August. It is an AI agent that completes tasks across apps and online services using its own virtual computer. Unlike a conventional chatbot, it can carry out multi-step tasks and keep working in the background.
Access comes through several paid SuperGrok and Cursor subscription plans. Usage is allocated separately from subscribers’ other Grok and Cursor allowances.
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