X (formerly Twitter) is launching a new push to sign up more paying users, by expanding access to its Grok AI chatbot to all Premium subscribers, not just those paying for its top tier Premium+ package.
Grok, which X launched back in November, is X’s answer to ChatGPT, with the system using X post data to power its responses, which X believes makes it a better chatbot for real-time, up-to-the-minute relevance.
But usage of Grok has been fairly limited thus far, because it’s only available in X’s $16 per month Premium+ package.
Fewer than 1% of X users have signed up to X’s basic $8 Premium offering, let alone Premium+, and as such, only a tiny fraction of X users, at this stage, actually have access to Grok, which has limited the amount of insight into how beneficial it actually is, and whether X users can glean real value from the chatbot tool.
But that’ll change this week, with Elon Musk announcing an expansion of Grok access:
As you can see in this example, you can also now share Grok responses in posts. Which is probably not the ideal use of AI chatbot tools, in replacing actual, human engagement. But social platforms are super keen to integrate AI however they can, and straight text generation is the simplest form of generative AI available at present for this purpose.
Expanding Grok access seems like a logical move to encourage more usage, and see what X has in its AI chatbot tool, and whether more users do find real benefit in having the option available.
But the expansion also comes with a level of risk, in that it could devalue X’s higher-priced subscription package, while it might also annoy users who’ve already paid a premium in order to use the tool.
At present, the differentiating factors of X Premium+ are:
- Grok access
- No ads in the “For You” and “Following” timelines
- Largest reply prioritization
- Access to X Articles
Without the first point, that could see more users questioning whether Premium+ is worth double the price, though that does also largely depend on your usage and preferences.
At the same time, X owner Elon Musk has suggested that a higher powered version of Grok may soon be available to Premium+ users, which could also act as a lure, and improve the value of the package.
Either way, X needs more subscribers, and making Grok more widely available could help in this respect.
When he first purchased the platform in late 2022, Musk outlined his plan to make paying subscribers a key focus, in order to generate more revenue for the app. The benefits would be twofold, bringing more money into the business, while also reducing the company’s reliance on ad dollars, leaving it less beholden to ad partners in regards to moderation.
Musk’s ambitious initial plan set out several key growth targets for both subscriptions and overall platform usage:
- 69 million X Premium subscribers by 2025
- 159 X Premium subscribers by 2028
- 600 million daily active users by 2025
- 931 million daily active users by 2028
But the platform is still a long way from meeting any of these targets.
X Premium subscriptions are estimated to be around 700k at present, with limited momentum in take-up, while X recently reported that it’s still sitting on 250 million daily actives, the same amount it had in November 2022.
That’s put a significant spanner in the works for Musk’s plan, and with ad revenue also still down around 50% on previous levels, the prospects for the company are not great, even with an 80% reduction in staff, and related costs.
The development of Grok has also been costly, and X needs to recoup what it can, while also aligning with broader growth goals.
As such, expanded access makes sense, but it remains to be seen whether users will actually find value in the chatbot, and if that could work to drive more subscription take up.
At this stage, it doesn’t seem like a big draw, but more people using Grok will lead to more coverage of its benefits, and potentially, more interest.
And if it doesn’t, X can still look to onsell its data to other AI companies, which could be another avenue for driving revenue.
