X announces a rebuilt ad platform powered by AI

Source: TechCrunch

Background

Elon Musk’s X is still trying to woo back advertisers — this time with a rebuilt, AI‑powered ads platform that started to roll out on Thursday.

The tech company initially struggled to grow ad revenue in the first few years of Musk’s reign, leading it to shift its focus to other monetization channels, including AI and subscriptions.

Forecasts from eMarketer indicate that X’s ad business is turning around, with estimated ad revenue of $2.26 billion in 2025, rising to $2.46 billion in 2026. While that’s still about half the size of Twitter’s 2021 ad business, the trend is upward.

New Ad Platform Rollout

X says it has begun a “phased rollout” of the new platform, which will feature more modern “retrieval and ranking systems” powered by AI. The changes are intended to make it easier for marketers to create targeted campaigns they can control. AI will be used to:

• Enhance campaign performance
• Deliver more relevant ad placements
• Provide precise targeting

“Very few companies would have the ambition and technical courage to completely rebuild their entire advertising platform in such a short timeframe. This is classic X and xAI — bold, fast, and focused on building something substantially better for advertisers,” said Monique Pintarelli, head of global advertising at xAI, in a statement posted on X.
“We are designing this new ad stack to enable more rapid and seamless integration of ongoing innovation. Advertisers can expect a smooth delivery of continuous improvements and a regular drop of new features as we keep pushing the platform forward.”

The rebuild follows X’s merger with Musk’s xAI last year.

Industry Context

AI has contributed to revenue growth in ad businesses across the tech industry. This week’s earnings reports show Google, Meta, and others enjoying a “digital ad boom,” as reported by The New York Times (article). AI systems automate many aspects of marketing—from ad creation to targeting to measurement—lowering the barrier for smaller businesses and giving them access to tools previously reserved for corporate giants.