Elon Musk’s X (formerly Twitter) faces challenges in sustaining profitability amid a significant decline in advertising revenue, which dropped by 60%. Since Musk’s acquisition, X’s revenue has strayed from its historical reliance on ads—previously 90% of its $5 billion annual intake. To counteract these losses, Musk is pivoting toward AI, promoting his xAI initiative as a revenue stream. This shift gained traction after the launch of the Grok 4 model, which spiked iOS revenue by 325% within days. Engagement with X’s AI companions also attracted a 40% increase in downloads. Despite potential biases and mental health concerns linked to AI interactions, Musk’s reputation as a tech innovator fuels interest. Emergent projections indicate a 16.5% increase in X’s global ad revenue by 2025, aligning with a possible comeback as brands reconsider their presence on the platform. If successful, X may find a viable revenue alternative while stabilizing its financial outlook.
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