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

Elon Musk said xAI’s Grok chatbot is growing quickly but its costs remain “unsustainably high” relative to revenue, speaking after SpaceX’s November 3 event. The comments put fresh scrutiny on the economics of Musk’s AI venture as it scales compute and infrastructure spending against a still-developing revenue base. Musk did not disclose specific figures for Grok’s costs or revenue, leaving investors to watch xAI’s next disclosures for a clearer picture of the gap. The remarks matter because they signal that even fast user growth may not be enough to offset the capital intensity of frontier AI models.