Elon Musk has said that operating xAI’s Grok Bot is costing more than the revenue it generates, describing the current financial model as unsustainable.
His remarks come as several X Premium subscribers report reaching their usage limits much faster than usual.
Musk made the comments in response to an X user, ‘DogecoinNorway’, who requested a reset of Grok Bot limits and said many users had exhausted their quotas unusually quickly over the past week. Musk said the cost of serving the AI assistant was too high compared with its current earnings.
Grok Bot requires significant computing power and expensive server infrastructure to handle complex tasks and its integration with X.
With its paid user base estimated at around 800,000, operating costs appear to be putting pressure on subscription revenue.
Musk’s remarks suggest that xAI is using stricter usage caps to control computing expenses. High infrastructure costs are also affecting other AI companies, including OpenAI, which have imposed limits on access to their advanced models.
It remains unclear whether xAI will introduce new pricing, revise existing quotas or improve its backend infrastructure to reduce costs.
Until then, users who rely heavily on Grok Bot may continue to face usage restrictions.
