UK Revenues Plunge at X as Advertising Pull-Back Intensifies; grok AI Tool Restricted
LONDON — UK revenues for Elon Musk’s X fell sharply in the latest reporting year, sliding by about 58% as major brands curb spend over concerns about content and safety on the platform. The company reported UK revenue of £28.9 million for the year ending December 31, 2024, down from £69.1 million in 2023.
The downturn follows a wave of advertiser hesitancy that coincided with heightened scrutiny of the site’s tools.X restricted the Grok image-generation feature for the vast majority of users after backlash over the tool’s use to create sexually explicit and violent imagery. Paying subscribers remain able to access Grok in some cases, while non-paying users encounter automated limits.
Brand Safety Standoff Drives Advertising Decline
Company accounts attribute the revenue drop largely to reduced ad spending by large brand advertisers, driven by concerns about brand safety, reputation, and content moderation. X said it is expanding tools to improve safety and ongoing efforts to educate advertisers about these measures.
As Musk completed his $44 billion takeover at the end of 2022,the platform has pursued cost cuts and structural changes. UK headcount fell from 114 to 76 last year, a one‑third decrease, as redundancy costs accumulated to more than £22 million as the acquisition.
Financial and Staffing Impact in the UK
Pre-tax profits in the UK collapsed year over year, from £2.2 million in 2023 to £767,000 in 2024. This contrasts with £8.5 million in pre-tax profits in 2022, the year Musk acquired the platform then known as Twitter.
X described the revenue decline as primarily stemming from softened advertising demand and pledged further investments in platform safety and moderation. The company also stressed it has taken steps to curb costs and improve performance.
grok and the Content-Moderation Controversy
The Grok episode has intensified scrutiny of the platform’s AI capabilities. After widespread criticism, including concerns over sexualized and violent imagery generated with Grok, the tool’s access was broadly curtailed. The policy now restricts generation for many users, with text indicating that image creation and editing are limited to paying subscribers.
Regulators and lawmakers have signaled potential action, and industry observers say the episode underscores a broader tension between rapid AI-enabled features and brand safety considerations on social networks. For context, similar debates have been playing out in other markets as platforms navigate the balance between innovation and responsibility.
Context: Takeover, Lawsuits, and Company Strategy
Since the 2022 takeover, X has repeatedly faced questions about its business model and advertising viability. The company has pursued litigation against several consumer brands in relation to advertising disputes, though some targets have been dropped. Others remain subject to legal action as the platform continues to defend its business practices.
Industry observers note that the UK revenue drop mirrors broader global advertiser caution, reflecting a period of upheaval in the social media advertising ecosystem and ongoing debates about content moderation and safety standards on major platforms. For background on the broader debate around Grok and safety issues, see coverage by major outlets.
What Comes Next: Evergreen Outlook
Analysts say the key question is whether X can restore advertiser confidence while maintaining user engagement and a safe environment. The coming months will likely hinge on how effectively the platform communicates its safety upgrades and how regulators respond to AI-enabled features.
Beyond the UK,the market continues to watch how platform safety tools,cost controls,and strategic shifts will influence revenue,staffing,and long-term viability. the Grok incident also serves as a case study in how quickly AI-related features can provoke legal and reputational risk for social networks.
| Metric | 2023 | 2024 | Notes |
|---|---|---|---|
| UK Revenue | £69.1m | £28.9m | 58.3% year‑over‑year drop |
| Pre‑tax profits (UK) | £2.2m | £767k | Notable decline |
| UK Staff | 114 | 76 | Down one‑third |
| Redundancy costs (since acquisition) | N/A | >£22m | Recorded in UK accounts |
In context, the company has pointed to ongoing cost discipline and safety initiatives as its path to a more stable financial trajectory, even as it faces regulatory scrutiny and evolving advertiser expectations. For outlook on the Grok controversy and its implications, readers may consult industry coverage from major outlets, including in‑depth reporting on the AI feature’s reception and potential regulatory responses.
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