Tuesday, 02 January 2024 12:17 GMT

Musk Says Grok Bot Operating Costs Outpace Revenue


Date:

(MENAFN) Elon Musk said Sunday that running xAI's Grok Bot had become “unsustainably high” in cost compared with the income generated by the service, drawing attention to the financial challenges facing the AI platform as its user base expands.

"The cost of serving Grok Bot was unsustainably high relative to revenue," Musk wrote on X while responding to a user's question about whether the chatbot's weekly usage allowance could be reset.

The user had complained that numerous subscribers were reaching their Grok Bot usage limits much earlier than usual during the week.

Musk did not disclose any financial figures or clarify whether the company intended to modify or renew the existing usage allowances.

xAI introduced Grok Bot in an early beta release in August, presenting it as an AI agent designed to perform tasks across applications and online platforms through its own virtual computer.

Unlike traditional chatbots, the tool can handle sequences of tasks involving multiple steps and continue executing them in the background.

The service is included in selected paid SuperGrok and Cursor subscription packages, with separate usage allowances from those allocated to other Grok and Cursor features.

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