X has doubled the price of its Premium+ subscription plan to $40 per month, making it more expensive for users who want access to its advanced AI chatbot, Grok 3. The price increase applies immediately to new subscribers, while existing users will see the change at the start of their next billing cycle.
The move highlights X’s broader shift toward AI-driven monetization as it distances itself from ad-based revenue models. By making Grok 3 a key feature of Premium+, X is betting that users will be willing to pay more for AI-enhanced interactions.
However, the increase raises questions about whether this integration justifies the cost—especially when compared to AI services like OpenAI’s ChatGPT Plus and Google Gemini Advanced.
Grok 3’s Performance and X’s New AI Integration
Grok 3 is the latest version of xAI’s chatbot, designed to compete with leading AI models. Built using Nvidia’s H100 GPUs, Grok 3 has outperformed GPT-4o in select AI benchmarks, though details about its real-world applications remain limited as of now.
X last December introduced a “Grok” button, allowing its users to generate AI-generated insights directly on posts. This feature expands Grok’s functionality beyond simple chatbot interactions, making it a more integral part of the X platform.
Elon Musk has positioned Grok as a more flexible alternative to mainstream AI models, arguing that it provides responses with fewer restrictions. However, placing the AI behind a paywall raises concerns about accessibility and whether casual users will adopt it.
X Shifts from Ad Monetization to Subscriptions
Since Musk’s takeover, X has aggressively pursued subscription-based revenue as its ad business continues to struggle. The platform has lost major advertisers due to concerns about content moderation, forcing it to explore alternative monetization strategies.
The X Basic tier ($3/month) targets users seeking core post-editing and formatting tools without verification benefits, while the Premium tier ($8/month) retains the original Twitter Blue features like the blue checkmark and ad revenue sharing.
The Premium+ plan ($40/month) originally offered perks such as reduced ads and increased visibility in replies. Now, with Grok 3 as its flagship feature, the plan is shifting toward an AI-access model. This change mirrors the approach taken by OpenAI’s ChatGPT Pro, where users pay a monthly fee for access to an advanced language model.
However, unlike competitors such as Anthropic, which offer AI services across multiple platforms, Grok 3 is currently limited to X Premium+ subscribers until xAI broadens its availability. This exclusivity could make it less attractive to users who prefer AI tools that integrate into workflows.
Grok 3 vs. Competing AI Models
Compared to other AI services like ChatGPT, Google Gemini, and Claude, Grok 3 stands out primarily because of its integration within X. However, this exclusivity may also be a limitation, as users who prefer AI models for productivity, research, or external applications may find X’s platform-dependent approach restrictive.
xAI claims that Grok 3 outperforms GPT-4o in benchmarks. Unlike OpenAI and Google, which provide detailed technical documentation, xAI has primarily relied on internal testing to demonstrate its model’s capabilities.
This lack of transparency makes it difficult to assess how Grok 3 truly compares in real-world scenarios but early testing results like those from Andrej Karpathy suggest that Grok 3 indeed is offering cutting edge performance ahead of GPT-4o for certain tasks and is also beating other reasoning models like OpenAI’s o1 model in some benchmarks.
Musk’s Legal Fight with OpenAI and the AI Power Struggle
The price hike for X Premium+ comes at a time when Elon Musk is engaged in a legal battle with OpenAI. Musk has sued the company, claiming it has abandoned its nonprofit mission in favor of profit-driven objectives under the influence of Microsoft. His lawsuit argues that OpenAI’s transformation into a for-profit entity contradicts its founding principles.
Meanwhile, OpenAI’s board is reportedly making governance changes to prevent Musk from regaining control of the organization. This signals an effort by OpenAI leadership to distance itself from Musk’s vision of AI development, reinforcing the competition between his company, xAI, and the broader AI industry.
Will X Users Accept the Price Hike?
The central question now is whether X users will embrace the new pricing structure. When the Premium+ tier first launched, it was marketed as a way to enhance engagement with benefits such as algorithmic boosts and ad reductions.
Now, with the shift toward AI features, the subscription is being reframed as an AI access plan rather than just a premium social media experience.
For users who already see value in AI-powered interactions within X, the new model may offer something unique. However, for those who primarily subscribed for verification or social media perks, the higher price may be harder to justify.
Musk’s push toward integrating AI into X signals a broader industry trend where frontier AI models are placed behind expensive paywalls, but whether this strategy will succeed depends on user adoption.
With OpenAI, Google, and other AI companies offering AI tools across multiple platforms, X’s decision to lock Grok 3 into its ecosystem is a bold move. The coming months will determine whether this strategy pays off or if users push back against AI monetization within a social media environment.
