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X Revamps Ad Platform with AI to Lure Back Advertisers

AI
May 1, 2026 · 1:40 AM
X Revamps Ad Platform with AI to Lure Back Advertisers

Elon Musk's X is rolling out a completely rebuilt advertising platform powered by artificial intelligence, marking a fresh attempt to win back marketers who fled the platform after his takeover.

The AI-driven ad system, which began a phased rollout on Thursday, features modern retrieval and ranking systems designed to improve campaign targeting and performance. X says the new platform will make it easier for advertisers to create targeted campaigns while AI enhances ad placements and precision.

This move comes as X's advertising revenue shows signs of recovery. According to eMarketer, X's ad revenue reached an estimated $2.26 billion in 2025, up from previous lows, and is projected to grow to $2.46 billion in 2026. While still half of Twitter's 2021 ad business, the trend is upward.

"Very few companies would have the ambition and technical courage to completely rebuild their entire advertising platform in such a short timeframe," said Monique Pintarelli, head of global advertising at xAI, in a statement. "This is classic X and xAI—bold, fast, and focused on building something substantially better for advertisers."

The ad platform overhaul is part of X's broader strategy to diversify revenue, which includes investments in AI and subscriptions. The company had struggled early in Musk's tenure but is now betting on AI to drive ad growth.