xAI’s Revenue Explodes by 325% After Grok 4 Launch

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