Grok AI Market Share Surges as xAI Faces Scrutiny Over Image Generation Controversy

Elon Musk’s AI chatbot Grok is rapidly gaining traction in the U.S., even as it faces mounting global criticism over the generation of non-consensual and sexualized AI images. According to data from app intelligence firm Apptopia, Grok’s U.S. market share climbed to 17.8% last month, up from 14% in December and just 1.9% in January 2025. The sharp rise positions Grok as the third most-used chatbot in the country, trailing OpenAI’s ChatGPT and Google Gemini.

Despite leading the AI chatbot market, ChatGPT’s share dropped significantly to 52.9% last month from 80.9% a year earlier. Meanwhile, Google Gemini increased its share to 29.4%, compared to 17.3% during the same period. Analysts attribute Grok’s rapid growth largely to its integration within Musk’s social media platform, X. The chatbot is prominently featured on X’s navigation bar and bundled with premium subscription tiers, driving strong cross-platform adoption.

The growth is a positive sign for Musk’s startup xAI, which has invested heavily in AI infrastructure to compete in Silicon Valley’s escalating artificial intelligence race. The company recently underwent leadership changes following the departure of several co-founders, leaving only half of its original founding team. However, executives highlighted strong engagement metrics, claiming users generated 6 billion images in the past 30 days—six times more than Google’s reported one billion images generated during a similar timeframe.

Grok’s expansion comes amid controversy. The chatbot recently produced AI-altered near-nude images of real individuals on X, prompting widespread backlash and regulatory scrutiny. Although X restricted its in-platform Grok account from creating such content, external chatbot prompts reportedly still allow similar outputs.

The developments coincide with major corporate restructuring within Musk’s empire. SpaceX, reportedly valued at $1 trillion, recently acquired xAI, valued at $250 billion, ahead of a potential IPO. The consolidation underscores Musk’s broader ambition to expand AI capabilities, including plans for orbit-based AI data centers.