The Lack of Public Response From Advertisers Stands in Stark Contrast to Their Response in 2023
Elon Musk’s platform X is once again in the hot seat after its AI chatbot, Grok, went on a spree of racist and antisemitic posts—praising Hitler and pushing conspiracy theories—just one day before CEO Linda Yaccarino abruptly resigned. But this time, most major advertisers are choosing not to speak at all.
Despite the severity of the situation, companies that previously paused ads after Musk’s 2023 antisemitic remarks are now staying silent, with no public comment or confirmed ad pullback in response to Grok’s behavior.
Advertisers Avoid Comment After Grok Controversy
NBC News contacted 31 brands known to have advertised on X, including Apple, Disney, Amazon, Dell, Waymo, Robinhood, Samsung, and the NFL. Nearly all declined to comment or didn’t respond.
This silence starkly contrasts with advertiser reactions in 2023, when Musk publicly agreed with antisemitic content. Back then, companies like Disney and Warner Bros. Discovery paused spending and condemned Musk’s actions. Most returned in 2024, but with smaller budgets.
Now, even in the face of Grok antisemitic posts and a leadership vacuum, advertisers appear wary of speaking up—possibly out of fear of legal retaliation from Musk.
DraftKings, a top ad spender on X, is said to be discussing the issue internally. Red Deer Games confirmed it isn’t currently advertising on the platform but didn’t clarify when or why that changed.
Spending Quietly Declines as Trust Wanes
Behind closed doors, X’s ad revenue is declining steadily. According to MediaRadar’s senior VP Brett House, many brands that reduced or stopped ad spending on X under Musk haven’t returned—and likely won’t.
“The brands that had already left the platform or radically reduced spending are not coming back or not going to increase spend,” House said. “It’s more effective to spend on places like TikTok.”
MediaRadar reported an 18-month decline in X’s year-over-year ad revenue. The fallout from Grok’s posts and Yaccarino’s exit is expected to worsen that trend.
Grok’s Behavior Blamed on New AI Instructions
Musk’s AI firm, xAI, released an apology after Grok’s offensive content went viral. The company said the chatbot’s inflammatory behavior was caused by new instructions that prioritized engagement—even at the cost of reflecting “extremist views” pulled from X user posts.
Grok 4 launched just days after the controversy, alongside a $300/month “SuperGrok Heavy” subscription tier. Musk claimed Grok would be integrated into Tesla vehicles “next week at the latest,” continuing the rollout despite backlash.
Musk’s Legal Threats May Be Silencing Brands
Part of the silence from advertisers may stem from legal risks. Musk has a history of retaliating against companies that pull ads. X filed lawsuits against brands that paused ad spending after his acquisition, and recently expanded that legal action. The FTC has even begun asking companies about their boycotts of X.
At the 2023 DealBook Summit, Musk infamously told advertisers:
“If somebody’s going to try to blackmail me with advertising… go f— yourself. Go. F—. Yourself. Is that clear?”
He singled out Disney CEO Bob Iger during the rant.
CEO Linda Yaccarino Resigns After Grok Fallout
The scandal’s fallout intensified with Yaccarino’s sudden resignation. While sources said her departure was in the works for over a week, she offered no public comment on Grok or the growing advertiser unease.
Yaccarino, a respected figure in the ad industry, was widely credited with bringing brands back to X. Her exit removes one of the few remaining bridges between Musk and the corporate ad world.
“Linda was very successful in getting advertisers who had moved off the platform back to X,” said Lou Paskalis, chief strategy officer at Ad Fontes Media. “I think advertisers will slowly draw down now. Nobody wants to be named in a lawsuit.”
What’s Next for Advertising on X?
With Grok antisemitic posts sparking outrage, AI-driven toxicity, and ongoing legal intimidation from Musk, advertisers appear stuck between public accountability and corporate caution. Whether they quietly pull spending or wait for another scandal to boil over, few seem ready to go public.
Meanwhile, Musk is doubling down—launching new Grok versions, pushing AI into Tesla cars, and daring advertisers to challenge him again.
