X AI Chatbot Grok Expands Access to Premium+
X AI, the platform backed by Elon Musk, recently introduced Grok, its innovative AI chatbot, to Premium+ subscribers. Musk announced the completion of the rollout to all U.S. Premium+ subscribers, acknowledging potential beta issues while emphasizing ongoing improvements. English language users with Premium+ subscriptions can expect access to Grok within the next week, followed by a rollout to Japanese users and a goal of supporting all languages by early 2024.
Despite Musk’s occasionally optimistic timelines, Grok’s launch closely aligned with his latest estimates. Initially projected for the following week, Grok was officially launched on December 7 instead of November 22.
The success of Grok in driving subscription revenue for X remains uncertain. Currently featured in X’s top-tier $16 per month Premium+ subscription, Grok faces competition from free alternatives like ChatGPT and Google’s Bard, potentially impacting its appeal to casual AI users.
Premium+ subscriptions offer additional perks, such as ad-free experiences in the For You and Following timelines, enhanced reply visibility, ads revenue sharing for creators, ID verification, a verified checkmark, access to Media Studio, and more. Despite these incentives, X’s primary revenue driver has historically been advertising rather than subscriptions.
However, the landscape may shift for X AI ad-supported future, given Musk’s recent confrontations with advertisers leaving the platform due to concerns about antisemitic content. The need for a significant number of Premium+ subscribers becomes crucial for X’s sustainability as it seeks to offset losses from departing brands like Apple, Disney, IBM, Paramount, Walmart, and others.
Notably, X experienced its highest-ever month for subscription revenue in November, reaching an estimated $6.2 million in net revenue after app store fees, according to Apptopia. While a commendable figure, it remains less than a third of Snapchat’s in-app subscription revenue, surpassing $20 million for the first time in the same month.
With over 500 million monthly active users, X AI has room to grow its subscriber base. The challenge lies in converting users to Premium+ to address the potential decline in ad dollars. The outcome remains uncertain, leaving X’s future growth as an intriguing narrative in the evolving landscape of social media platforms.
