X doubles its Premium+ plan prices after xAI releases Grok 3

Shafici Said
|
February 19, 2025

X has raised its Premium+ subscription prices again, marking a steep increase for users who want access to the platform's top features. The Premium+ plan now costs $50 per month or $350 per year, which is more than double its previous price of $22 monthly.

A graph showing a sharp increase in prices with the xAI logo and Grok 3 prominently displayed

The price hike comes right after xAI released Grok 3, the latest version of its artificial intelligence chatbot. Premium+ subscribers in the United States will get early access to this new AI model starting today.

This marks the second price increase in just two months for X's top subscription tier. The previous increase happened in December 2024, when the monthly fee went from $16 to $22.

Overview of X's Premium+ Plan Price Change

A graph showing a sharp increase in price for X's Premium+ plan after the release of Grok 3 by xAI

X has doubled its Premium+ subscription prices following the release of Grok 3, their newest AI chatbot. The monthly subscription now costs $50, up from $22.

The annual subscription plan is priced at $350, offering subscribers a small discount compared to paying monthly.

This marks the second price increase in recent months. In December 2024, X raised the Premium+ price from $16 to $22 per month.

Key Premium+ Features:

  • Early access to Grok 3 AI model
  • Ad-free experience
  • Blue checkmark verification
  • Priority ranking in conversations
  • Extended post length

Existing subscribers will keep their current rates until their next billing cycle after January 20, 2025. New subscribers must pay the updated prices immediately.

The price increase applies only to U.S. customers, who will be the first to access the new Grok 3 features through their Premium+ subscriptions.

Impact of xAI's Grok 3 Release on the Market

The market graph shows a sharp increase in Premium+ plan prices following xAI's Grok 3 release

The release of Grok 3, xAI's latest AI model, prompted immediate changes in X's pricing strategy. X raised its Premium+ subscription to nearly $50 monthly, marking the second price increase in recent months.

xAI claims the new model is significantly more capable than its predecessor. The company introduced three key offerings:

  • Grok 3 (flagship model)
  • Grok 3 Mini (scaled-down version)
  • DeepSearch (new search feature)

The price increase affects users worldwide who want access to the latest AI features. Premium+ subscribers now pay double the previous rate to use Grok 3's enhanced capabilities.

Market response to the launch shows X's confidence in Grok 3's value proposition. The company positions itself against other AI providers by emphasizing performance improvements and new features.

This strategic pricing move signals X's push to monetize AI technology more aggressively. The company ties premium AI features directly to its subscription model.

Analyst Insights on Price Increases and Competition

The graph shows a sharp increase in the price of Premium+ plans for X after the release of Grok 3 by xAI, with a corresponding drop in competitors' prices

Market experts note that X's decision to double Premium+ subscription prices reflects a bold strategy in the AI-enabled social media space. The timing aligns with xAI's launch of Grok 3, suggesting a coordinated effort to monetize advanced AI features.

The price jump to $22 per month marks the second increase within two months. Industry watchers point out this aggressive pricing strategy could push users toward competing platforms that offer AI features at lower costs.

Competition in the social media AI space remains fierce. Analysts highlight three key factors affecting X's market position:

  • Integration of Grok 3 with Premium+ subscriptions
  • User retention risks due to price sensitivity
  • Competitive pressure from rival platforms' AI offerings

Some financial analysts express concern about user confusion regarding pricing tiers. They suggest clearer communication about Premium+ benefits could help justify the increased costs to subscribers.

Consumer Responses to Premium+ Price Doubling

Users have expressed strong reactions to X's decision to increase Premium+ prices from $22 to $40 monthly. Many subscribers took to the platform to voice their concerns about the sudden price change.

Some Premium+ members immediately announced plans to cancel their subscriptions. The main complaints center around the steep price increase happening without additional features beyond Grok-3 AI access.

The price jump marks X's most significant increase since Elon Musk acquired the platform. The 37.5% increase in December 2023 had already caused user pushback, making this second major hike particularly controversial.

Business analysts note that doubling subscription costs risks pushing away loyal premium users. Some experts predict a potential decline in Premium+ memberships as users evaluate whether the new pricing justifies the benefits.

Current Premium+ Benefits:

  • Access to Grok-3 AI
  • Ad-free experience
  • Blue checkmark verification
  • Longer posts
  • Priority ranking in conversations

Historical Pricing Trends for X's Services

X's Premium+ subscription has seen multiple price increases in recent months. The plan jumped to $22 monthly in December 2024.

The latest increase has now pushed Premium+ to $40 per month, with an annual plan option of $299.

Key Price Changes for Premium+:

  • Original Price: $16/month
  • December 2024: $22/month
  • February 2025: $40/month

This steep price increase coincides with the release of Grok 3, xAI's newest AI model. Premium+ subscribers now get exclusive access to Grok 3 as part of their subscription.

The rapid price increases reflect X's strategy to monetize its AI features. In just two months, the subscription cost has more than doubled from its original price point.

Comparative Analysis of Competing Subscription Services

X's Premium+ subscription now costs $22 monthly, making it one of the most expensive social media subscriptions available.

Facebook's Meta Verified costs $11.99 per month, while LinkedIn Premium starts at $29.99 monthly. Reddit Premium remains the most affordable at $5.99 per month.

Key Features Comparison:

  • X Premium+: Ad-free experience, blue checkmark, longer posts
  • Meta Verified: Account verification, increased visibility, dedicated support
  • LinkedIn Premium: InMail credits, profile views, advanced search
  • Reddit Premium: No ads, custom avatars, exclusive awards

The price increase puts X Premium+ in an awkward position. Most users get similar features from competing platforms at lower costs.

Both Meta Verified and LinkedIn Premium offer more business-focused benefits. Their verification systems carry more professional weight than X's blue checkmark.

Market Position by Monthly Cost:

  1. LinkedIn Premium: $29.99
  2. X Premium+: $22.00
  3. Meta Verified: $11.99
  4. Reddit Premium: $5.99

The new pricing structure may further reduce X's already limited subscriber base, as users question the value proposition compared to alternatives.

Projected Long-Term Effects on X's Market Share

The price increase for Premium+ subscriptions will likely lead to a 15-20% drop in paid subscribers during Q2-Q3 2025. Many users are expected to downgrade to basic plans or seek alternative platforms.

X's market growth projections indicate potential challenges in maintaining its current user base through 2023 to 2024.

Key impacts on market share:

  • Reduced accessibility for small businesses and creators
  • Increased competition from cheaper AI chatbot platforms
  • Potential exodus of content creators to rival networks

The platform's revenue may see short-term gains, but analysts predict a 3-5% decline in total market share by Q4 2025. This shift could benefit competing social networks that offer AI features at lower price points.

Enterprise customers, who make up 30% of Premium+ subscribers, are likely to stay despite the price increase due to existing integration commitments and contracts.

Small and medium-sized businesses will face the toughest decisions, with an estimated 40% considering alternatives or reduced platform usage. This segment represents X's fastest-growing user base from 2023-2024.

The price adjustment comes at a critical time when industry growth rates suggest increased competition in the social media AI space.

X's Official Statement on the Price Increase

X announced a significant price adjustment for its Premium+ subscription plan. Current subscribers will keep their existing rates until January 20, 2025, after which the new pricing takes effect.

The company stated that Premium+ subscribers will now pay up to $40 monthly or $299 annually for the service. This marks the second price increase in recent months, following a previous hike to $22 per month in December 2024.

The company justified the price increase by highlighting exclusive access to the new Grok-3 AI model for Premium+ subscribers. X claims this upgrade provides enhanced AI capabilities and features for users.

Key changes to Premium+ pricing:

  • Previous monthly rate: $22
  • Previous annual rate: $299
  • New monthly rate: $40
  • New annual rate: $396
  • Implementation date: After January 20, 2025

The price adjustment affects new subscribers immediately, while existing members maintain their current rates through their next billing cycle.

Adjustments to X's Membership Benefits

X has increased Premium+ subscription prices from $16 to $22 per month in the United States. The annual plan cost jumped from $168 to $229.

The price increase of 37.5% marks the largest adjustment since Elon Musk acquired the platform in 2022. This change affects both new and existing subscribers.

Implementation Timeline:

  • New subscribers: Price change effective December 21, 2024
  • Existing subscribers: New rates apply after January 20, 2025

Premium+ members maintain access to key features:

  • Ad-free browsing
  • Post-verification badge
  • Longer posts
  • Priority ranking in conversations
  • Access to Grok AI chatbot

The price adjustment comes after X rolled out its latest AI model, Grok 3. Users can access this advanced AI assistant exclusively through Premium+ memberships.

X notified current subscribers about these changes through email notifications and platform announcements. Members who wish to keep their subscriptions active will transition to the new pricing structure on their next billing cycle.

Implications for Future Product Releases

The price increase to $40 per month for X Premium+ suggests a new strategy of tying AI advances to subscription price hikes.

This pattern indicates future xAI releases may trigger similar price increases across X's premium tiers. Companies and individual users will need to weigh the value of accessing new AI features against rising costs.

The rapid price  changes—from $16 to $22 in December 2024, and now to $40—show X's willingness to adjust pricing based on AI capabilities.

Key Considerations for Users:

  • Premium features may become increasingly expensive
  • AI improvements will likely drive future price changes
  • Early adoption of new features may come at premium costs

Other social media platforms may follow this model of linking AI advancements to subscription costs. This could create a trend where advanced AI features become exclusive to higher-priced tiers across various platforms.

The integration of Grok 3 with X Premium+ sets a precedent for how AI companies might monetize their technology through social media partnerships.

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