On July 9, 2025, xAI launched Grok 4, its most advanced AI model yet. Within two days, its gross iOS revenue skyrocketed to $419,000, up from $99,000 just before the release—a 325% jump attributed mainly to user excitement around the new model
Key Numbers Behind the Boom
- Gross iOS revenue:
- Before launch: ~$99,000
- After launch (July 11): ~$419,000 → +325% jump
- Post-launch days: ~$367,000 then ~$310,000 TechCrunch
- iOS daily downloads:
- Before launch: ~52,000
- July 11: ~197,000 → +279% increase
By July 14, Grok’s companion avatars added incremental revenue (a 9% rise to ~$337,000), while downloads increased globally by 40%, reaching 171,000 installs
Why Grok 4 Made the Difference
- Benchmark leadership: On “Humanity’s Last Exam,” Grok 4 scored 25.4% unaided and up to 44.4% with tool integration, outpacing competitors such as OpenAI’s o3 and Gemini 2.5 Pro with tools
- Premium subscriptions: The launch included the SuperGrok Heavy tier at $300/month, targeting power users and developer
- Growing subscription base: Grok is available via X Premium+ on the X platform, helping boost user engagement and monetization
Broader Growth Context for xAI
- Funding and valuation: In mid-2025, xAI raised billions in funding. The company was valued between $170B–$200B, following recent capital rounds supported by major investors like Sequoia and Fidelity
- Financial outlook: Despite revenue growth, xAI expects $500M revenue and $13B in losses for 2025, with fundraising efforts of up to $9.3B underway to sustain operations
- Infrastructure scale-up: Its supercomputer, Colossus, now hosts over 200,000 GPUs in Memphis and is expanding rapidly to meet AI training demands
What the Surge Means
- Proof of product-market fit: Grok 4’s strong performance and user uptake demonstrate xAI’s ability to compete with established AI providers.
- Subscription monetization works: High-paying tiers like SuperGrok Heavy are translating into meaningful revenue.
- Momentum may attract investors: With soaring usage and strong tech foundations, Grok 4 could help accelerate longer-term profitability plans.
Summary Table
| Metric | Value or Trend |
|---|---|
| Gross iOS revenue surge | +325% (from $99K to $419K) |
| Daily iOS downloads increase | +279% (~52K to ~197K daily) |
| Estimated 2025 revenue | $500 million |
| Projected 2025 losses | $13 billion |
