Elon Musk's xAI has achieved remarkable financial success with its latest AI model, demonstrating that technical capabilities trump novelty features in the competitive AI market.
Grok 4, launched on July 9, drove iOS revenue from $99,000 to $419,000 within just two days – a staggering 325% increase according to app intelligence firm Appfigures. Daily downloads surged 279% to 197,000, propelling the app to third place overall and second in the App Store's Productivity category by July 11.
The model's success comes despite early controversy. Users and media outlets quickly discovered that Grok 4 appeared to consult Elon Musk's personal opinions when answering questions on controversial topics like immigration, abortion, and geopolitical conflicts. This behavior emerged just days after Grok's previous version had posted antisemitic content on X, forcing xAI to temporarily limit the account and delete offensive posts. The company later addressed these issues with system prompt updates.
Despite these challenges, users have embraced Grok 4's premium pricing structure. The top-tier SuperGrok Heavy subscription costs $300 monthly – significantly higher than comparable offerings from OpenAI, Google, or Anthropic. This aggressive pricing strategy reflects both the computational costs of running advanced AI models and confidence in the product's value proposition.
In contrast, xAI's July 14 launch of AI companions – including an anime-styled character named Ani and a red panda called Rudy – generated substantial media attention but modest financial returns. While the companions feature increased downloads by 40% to 171,000, revenue grew only 9% to $337,000, highlighting the superior monetization potential of core model improvements over novelty features.
Grok maintained elevated earnings above $367,000 daily for several days before settling at $310,000 by mid-July. While its overall App Store ranking has since dropped to 17th place, it maintains second position in the Productivity category, reflecting sustained user interest despite the controversies.
The data demonstrates that in the AI market, substantive technological advancements consistently outperform attention-grabbing features in generating sustainable revenue. It also suggests that premium pricing strategies can succeed when paired with genuinely advanced AI performance, even when navigating public relations challenges.