Elon Musk announced that xAI is reducing usage limits for Grok Bot because the cost of serving the AI is "unsustainably high relative to revenue," according to a post on X.
The decision follows complaints from users who reported hitting their usage caps significantly faster than usual. Some users claimed their limits were slashed in half, while others reported usage jumping from 56% to 100% within a single hour, even when not performing heavy tasks or using AI agents. Some customers described the unannounced reduction in service as an "indirect rug pull."
Musk did not specify whether the cuts affect all subscription tiers or only the entry-level Premium tier, which starts at $30 per month. In response to a user complaint, Musk asked if upgrading to a higher-tier plan would be too expensive. The available tiers include Premium at $30, Super at $100, and Ultra at $200 per month.
The move contradicts recent growth claims for the product. SpaceX President Gwynne Shotwell stated that Grok Bot had 800,000 paying weekly users in early October, doubling the previous month's total. Musk previously described the bot as the fastest-growing product he has ever seen.
Musk has not disclosed specific figures regarding the revenue generated by Grok Bot or the exact costs associated with its operation. The announcement highlights broader industry challenges regarding the expense of serving large-scale AI models to millions of users.
