xAINovember 5, 20261 sources
Musk says Grok costs are 'unsustainably high' as xAI cuts compute for paying users
AI Analysis
This is an unusually candid admission about frontier-model unit economics. xAI responded by reducing compute behind Grok, which shows up directly as tighter effective limits for subscribers.
It fits a broader cost squeeze: OpenAI's new ChatGPT limits drew "worst decision ever" headlines, and Apple flagged usage limits for Siri AI. xAI also has government and defense revenue; a Pentagon statement credited its models in Operation Epic Fury. Meanwhile, Grok 4.7 is priced at $6 per million output tokens, versus $10 for GPT-6.1 Sol.
Watch for subscription repricing, which xAI has already started restructuring through its X Subscription tiers.