Elon Musk Admits Grok Bot Costs Are Unsustainably High

SpaceX just dropped sixteen billion four hundred million dollars on AI capital expenses in a single quarter. That massive number ate up eighty-four percent of their total capital spending for the period. Elon Musk revealed on October twentieth that Grok Bot is growing faster than any product he has ever seen. Eight hundred thousand paid weekly users are now driving up compute costs at an alarming rate. Musk admitted on Sunday that serving the AI bot is unsustainably high compared to actual revenue. Grok handles multi-step tasks across apps, which uses far more computing power than basic chatbots. SpaceX actually made seven billion five hundred million dollars in its Super Intelligence division during the third quarter. But their infrastructure spending is currently outpacing what that entire division brings in. Musk now faces a tough choice between renting data center capacity or feeding his own growing AI bot.