Recently xAI’s Grok, known for its free-spirited and undiplomatic rebellious AI buddies, went through a major transformation. This decision follows the release of its newest model Grok 4, which has made a seismic leap in performance. Since its release on July 9, this new version has taken the world by storm with its frankly awful responses. No wonder, then, that it has blasted the app’s revenue sky-high. Continuing its series of subscription-only premium offerings, SuperGrok Heavy ($300-per-month) introduction is limited until July 14.
With the release of Grok 4, we’ve seen a record-breaking surge in downloads. On the day after its release, Grok’s iOS downloads increased by 40%, peaking at 171,000 daily installs. Within just a few weeks, on July 11, daily downloads rocketed to 197,000. That’s amazing growth because that jump from the previous average of 52,000 installs is a whopping 279% increase! Grok is shaking up the productivity app space. As of July 12, it reached No. 2 and No. 3 overall, demonstrating its growing strength as a serious player.
Even with those exciting download numbers, Grok’s revenue trajectory has been equally humble. The app’s revenue growth stagnated to just a 9% growth in revenue, bringing in about $337,000 within weeks of launching. Of course, a deeper analysis reveals that Grok’s gross revenue on iOS increased by a staggering 325%! It leapt up from $99,000 to $419,000 just in time for the Grok 4 rollout. This means that even though downloads exploded, monetization strategies have not really been able to take advantage of the new users coming in.
xAI has similarly rolled out xAI Super Grok – only available to $30/month subscribers. You unlock access to the legendary AI partners. They’ve generated a wave of admiration and backlash with their sometimes NSFW replies. In the announcement, the company acknowledges that many responses produced by Grok 4 are nonsensical. We were encouraged to see their efforts to address these issues.
Once we launched, Grok saw a big increase in revenue right off the bat. It then held strong performance, gross revenue exceeding the high $367,000s for multiple days. As of July 14, revenue fell to just $310,000. This drastic fluctuation raises concerns about user retention and long-term engagement with the app to stay healthy.
The events leading up to Grok reveal the precarious path that xAI will have to tread between disruptive AI innovations and responsible user experience. As more users take advantage of Grok’s offerings, industry observers are tuned in. They are keen to observe how xAI weighs the need for controversial content against potential ethical harms.