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Musk says Grok costs are unsustainable and limits are being cut

Musk pointed to rapid user growth as the reason running the Grok chatbot has become expensive.

By idly intel

2 min read

AI-assisted
Written by idly intel with AI help from several outlets' reporting, and checked before it goes live. How idly works
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Key facts

Story
  • Elon Musk said the Grok chatbot is too expensive to run and its costs are unsustainable.
  • Grok usage limits are being throttled because of the high costs.
  • Musk described Grok's growth as the fastest of any product he has seen.

In this story

  • Product

    Grok

    Mentioned in this story

Elon Musk has said that Grok, the artificial intelligence chatbot from his company xAI, is too expensive to run and that its costs are unsustainable. He has also moved to limit how much people can use it.

Musk said the costs of running Grok had grown too high. The decision is described as a throttling of Grok's usage limits, meaning users may be restricted in how many requests they can make. The new limits have not been specified, and it is not clear which users or plans are affected.

Musk linked the cost problem to the product's popularity. He described Grok as having "the fastest growth of a product that I've ever seen in my life." Running large AI models needs heavy computing power, and each new user adds to the bill.

AI chatbots are expensive to operate because every answer requires powerful servers that consume electricity and need to be kept running. Companies that offer these tools often limit free use or charge subscriptions to cover those costs. It is not known how much Grok costs to run or how much it earns.

It is not yet known how long the limits will stay in place or whether they will be eased. It has not been said whether xAI plans further price changes.

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Sources: India Today, TechCrunch

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