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AI·2 min read

Grok Cuts Chatbot Usage Limits as Musk Cites Unsustainable Costs

Grok has lowered its chatbot usage limits, and Elon Musk says serving the bot costs far more than it earns. Users saw weekly quotas drain over Halloween weekend.

Smartphone showing the Grok chatbot interface with a nearly full usage meter against a dark background.
Image: zdnet.co.kr

Grok has reduced the usage limits on its AI chatbot, with Elon Musk pointing to the cost of running the service as the reason. Users first noticed the change over the Halloween weekend, when weekly quotas appeared to run out unexpectedly.

Several users posted on X that their allowance was used up far faster than normal. One user said the usage meter jumped from 50% to 100% even though they had not used the chatbot any further.

Musk, who is CEO of SpaceX, addressed the change on X on November 1. He said the cost of providing the Grok bot had been unsustainably high compared with the revenue it brings in. He did not say how much the limits were cut, nor what rules will apply to subscribers going forward.

AI is a big part of SpaceX's business

The AI business, which includes the Grok bot, is a major source of income for SpaceX. According to figures the company published last month, 52% of its total revenue came from AI. The Grok bot itself, however, reportedly costs more to run than it earns in service revenue.

The Superintelligence division, which runs the AI business, recorded a figure of $431 million. That number includes a one-time cost of $1.2 billion tied to SpaceX's acquisition of Cursor.

What it means for users

For people who rely on Grok for daily work, the lack of detail is the main problem. Without a published limit or a clear explanation of how usage is counted, it is hard to predict when a quota will run out or whether paying subscribers will get different treatment.

The episode also shows how heavy the compute bill for AI chatbots can be, even for a company whose AI unit accounts for more than half of group revenue. Whether SpaceX publishes new limits or adjusts subscription terms remains to be seen.

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Tags:grokxaispacexelon muskusage limitsai costs

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