Elon Musk says Grok Bot was throttled because costs were ‘unsustainably high’ — as users call the move a ‘rug pull’

Musk and Grok
(Image credit: Shutterstock)

  • Grok Bot users recently found they were hitting their usage limits very fast
  • That’s because Elon Musk decided to throttle Grok Bot usage limits
  • The X owner said Grok Bot costs were "unsustainably high"

If you noticed that you burned through your Grok Bot usage much faster than usual in recent days, there’s a reason for that: Elon Musk intentionally limited users’ AI agent allowances in the face of “unsustainably high costs.” And as you’d expect, a lot of people are unhappy with that.

The revelation came about after an X user pinged platform owner Musk, asking for a Grok Bot reset after they surprisingly hit their 100% usage limit, four days before it was due to reset. They additionally commented that “Normally I don’t even reach 100%.”

Musk then replied to the post, stating: “The cost of serving Grok Bot was unsustainably high relative to revenue.”

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Many X users seemed irked by the situation, with several saying that their Grok Bot usage had hit the 100% limit while they were sleeping and not using any AI agents. Users claimed their usage had suddenly gone from 50% to 100%, 35% to 78%, and 70% to 100%, all supposedly without using Grok Bot at all.

Unsustainable costs

Grok on a smartphone

(Image credit: Shutterstock)

Elon Musk’s comments come amid broader scrutiny of the financial sustainability of many AI products. Tech stocks — including those of many leading AI firms — fell sharply last week as investors grew concerned over the profitability of the industry, with Google revealing that its own AI summaries have hurt its search advertising revenue.

Concerns have also been raised in recent months over the finances involved in many AI companies’ offerings. For instance, users of AI tools like ChatGPT and Claude Code can often spend many times more in tokens than they’re actually paying in monthly subscriptions, leading to questions over how sustainable many AI business models really are and whether things will need to be adjusted in the near future.

This changing landscape hasn’t gone down well with many users, of course. One thread on Reddit dubbed Musk’s about-face an “indirect rug pull” of Grok Bot, with features and usage limited in a bid to cut costs.

But it’s unlikely that AI producers will be able to subsidize their products’ costs to users forever. Usage limits will necessarily need to tighten (as OpenAI quietly announced recently, much to the frustration of users) and prices will need to increase for these business models to make sense. So don’t be surprised if Grok Bot’s lower cap is just the first of many big changes looming on the horizon.


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Alex Blake
Freelance Contributor

Alex Blake has been fooling around with computers since the early 1990s, and since that time he's learned a thing or two about tech. No more than two things, though. That's all his brain can hold. As well as TechRadar, Alex writes for iMore, Digital Trends and Creative Bloq, among others. He was previously commissioning editor at MacFormat magazine. That means he mostly covers the world of Apple and its latest products, but also Windows, computer peripherals, mobile apps, and much more beyond. When not writing, you can find him hiking the English countryside and gaming on his PC.

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