Grok Bot is growing fast—but Elon Musk says its costs are ‘unsustainably high’ compared to revenue

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Grok is on a streak. On SpaceX’s Q3 earnings call on Oct. 20, CEO Elon Musk told analysts the company’s AI bot is “seeing the fastest growth of a product that I’ve ever seen in my life.” But that growth comes with a cost. On Sunday, Musk responded to an X user who asked him to reset their Grok Bot usage allowance after it ran out four days early. “The cost of serving Grok Bot was unsustainably high relative to revenue,” Musk wrote on X. Musk’s reply highlights a problem facing AI companies that even users who pay for AI can cost more to serve because they use AI agents that perform more compute-intensive tasks. Grok Bot, an AI agent developed by SpaceX that launched in August, can carry out multi-step tasks on users’ behalf such as browsing websites, drafting emails, and processing invoices, and it can work across apps and websites as well. SpaceX President Gwynne Shotwell told analysts on the recent earnings call that Grok Bot reached 800,000 paid weekly users earlier that month,…

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