X announces a rebuilt ad platform powered by AI
AI-powered ad targeting aims to woo back advertisers after Musk's rocky start.
X has announced a rebuilt, AI-powered advertising platform, rolling out in phases starting Thursday. The system leverages advanced retrieval and ranking models from xAI, Elon Musk's AI company, to enhance ad targeting, relevance, and campaign performance. According to Monique Pintarelli, head of global advertising at xAI, the platform is 'bold, fast, and focused on building something substantially better for advertisers' and will enable rapid integration of continuous improvements. This move comes after a turbulent period for X's ad business, which dropped following Musk's acquisition but is now recovering. EMarketer forecasts X's ad revenue at $2.26 billion in 2025 and $2.46 billion in 2026, still below Twitter's 2021 peak of over $4 billion but trending upward.
The rebuild is part of a broader trend in digital advertising, where AI is automating creation, targeting, and measurement. Google and Meta have similarly benefited from AI-driven ad booms. X's integration with xAI aims to differentiate by offering innovative features and more precise control for marketers. The new platform is designed to lower barriers for smaller businesses while providing enterprise-grade tools. While details on specific AI models remain sparse, the company claims the platform will deliver 'better results, more relevant ad placements, and precise targeting.' Advertisers can expect continuous feature drops as X pushes forward.
- X began a phased rollout of a new AI-powered ad platform built with xAI's retrieval and ranking systems.
- Estimated 2025 ad revenue is $2.26B, growing to $2.46B in 2026, still half of Twitter's 2021 peak.
- AI automates targeting, creation, and measurement, making advanced tools accessible to small businesses.
Why It Matters
AI-driven ads could revive X's ad business while leveling the playing field for smaller advertisers.