X Taps xAI to Rebuild Ad System Around AI-Powered Semantic Targeting

X, formerly Twitter, still faces advertiser concerns over brand safety and content moderation as Elon Musk pursues his “Everything App” vision. Its UK revenue fell to £28.9 million in 2024 from £69.1 million in 2023. The overhaul of its underlying advertising technology with xAI will be critical to winning back ad budgets and turning real-time social signals into revenue.

X began rolling out a revamped Ads Manager in phases in April 2026, calling it the biggest overhaul of its advertising platform in the company’s 20-year history. The system uses xAI for retrieval and ranking, optimizing ad delivery based on user behavior, real-time conversations and context. X announced Creator Connect on May 19, with xAI matching brands and creators according to campaign objectives, audience interests and real-time trends. X handles outreach, content production and publishing.