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← 2026-11-05 edition

THE SHORT VERSION

Musk admits Grok costs more to run than it makes

Asked on X on November 1 whether xAI could reset Grok Bot's weekly usage pool, Elon Musk answered in plain words: “The cost of serving Grok Bot was unsustainably high relative to revenue.” Paying users had burned through their weekly allowances days early, some in about an hour.

Grok Bot, launched August 11, runs multi-step jobs on its own virtual computer — research, writing, browsing — which chews through far more GPU time than a chat reply. It grew to roughly 800,000 paid weekly users in about two months, and the growth made the bill worse, not better.