Elon Musk’s X is still trying to woo advertisers — this time with a retooled AI-powered ad platform that started dating on Thursday.
The technology company first fight to increase ad revenue in the early years of Musk’s reign, leading him to shift his focus to other revenue-generating channels such as AI and subscriptions. However, predictions from eMarketer indicate that X’s ad business has been renewed recently, with estimated ad revenue of $2.26 billion in 2025, rising to $2.46 billion in 2026. While that’s still half the size of Twitter’s ad business in 2021, it’s still moving in the right direction.
Now, X hopes to improve on that growth with a new ad platform.
According to X, a “phased rollout” of the new platform has begun, which it claims will have more advanced “retrieval and ranking systems,” powered by AI. These changes are intended to make it easier for marketers to create targeted campaigns that they can control. AI will be used to improve campaigns, offering better results, more relevant ad placements and precise targeting, according to X.
“Very few companies would 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 creating something much better for advertisers,” said Monique Pintarelli, head of global advertising at xAI. statement published in X. “We’re designing this new ad stack to enable the fastest and most seamless integration of continuous innovation. Advertisers can expect a smooth delivery of continuous improvements and a regular drop in new features as we continue to advance the platform.”
Unsurprisingly, rebuilding X’s ad platform has been a priority for the company since its merger with Musk’s xAI last year.
Artificial intelligence has helped drive revenue for advertising businesses across the tech industry, as this week’s earnings showed. Google, Meta and others enjoy a ‘digital ad boom’ The New York Times noted this week, as artificial intelligence systems have helped automate various aspects of marketing, from ad creation to targeting to measurement. This has also lowered the barrier for smaller businesses, giving them access to the same tools used by corporate giants, the report says.
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