Elon Musk’s X is still trying to lure advertisers back, but this time it’s a reimagined AI-powered ad platform that began rolling out Thursday.
The tech company initially struggled to grow advertising revenue during the first few years of the Musk administration, leading it to shift its focus to other monetization channels such as AI and subscriptions. However, prediction According to eMarketer, X’s advertising business has been on the upswing recently, with estimated ad revenue of $2.26 billion in 2025 and growing. This is only half the size of Twitter’s ad business in 2021, but it’s heading in the right direction again.
Now, X wants to further fuel its growth with a new advertising platform.
According to X, the company has begun a “phased rollout” of its new platform, which it claims will feature a more modern “search and ranking system” powered by AI. These changes are intended to make it easier for marketers to create targeted campaigns that they have control over. According to X, AI will be used to enhance campaigns, providing better results, more relevant ad placement, and precise targeting.
“Few companies have the ambition and technical courage to completely rebuild their entire advertising platform in such a short period of time. This is classic X and xAI: bold, fast, and focused on building something substantively better for advertisers,” Monique Pintarelli, global head of advertising at xAI, said in a statement published in X. “We’re designing this new ad stack to help us integrate our ongoing innovations more quickly and seamlessly. As we continue to advance our platform, advertisers can expect a smooth delivery of continuous improvements and regular introductions of new features.” Previous. ”
It’s no surprise that rebuilding X’s ad platform was a priority for the company after merging with Musk’s xAI last year.
As this week’s results show, AI is helping boost revenue for advertising businesses across the tech industry. The New York Times reported this week that Google, Meta and others are enjoying a “digital advertising boom” as AI systems help automate many aspects of marketing, from ad creation to targeting and measurement. This lowers barriers for small and medium-sized businesses, allowing them to access the same tools used by larger companies, the report said.
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