AGP Picks
View all

Musk Admits Grok Bot Costs Outpace Revenue as Demand Surges

News originally published by

MENAFN

(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.

MENAFN02112026000045017169ID1111900557

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

Share this page:

Advanced Search Options

Search for:

Search scope:

Type:

Search in:

Date range:

The last

Sort by:

Sign up for:

UK Small Business News

The daily local news briefing you can trust. Every day. Subscribe now.

By signing up, you agree to our Terms & Conditions.