- Grok downloads fell from over 20M in January to about 8.3M in April, WSJ data showed.
- Recon Analytics found Grok paid adoption almost flat at 0.174% in Q2 2026.
- Enterprise surveys showed Grok trailing Claude and Gemini in business AI adoption.
Elon Musk’s Grok is under fresh scrutiny, with market data indicating sluggish growth, weak paid adoption, and limited enterprise usage. The chatbot was launched in 2023 to compete with bigger rivals also in AI, but recent figures suggest the gap remains large.
Musk introduced Grok through xAI with plans to compete against OpenAI, Anthropic, and Google. Two years later, data compiled by the Wall Street Journal shows the platform has struggled to match those companies in key areas.
Weaker user momentum and more modest demand for its business were cited in the report. It further claimed that companies associated with Musk are providing computing capacity to other AI companies, rather than using it all for Grok.
Grok Downloads Drop After Brief January Spike
In January, when controversial image-generation tools circulated on social media, Grok gained brief, outsized attention. The WSJ, which cites AppMagic data, noted that downloads in that month surpassed 20 million.
That surge faded quickly. Data from AppMagic reveals downloads fell to approximately 8.3 million in April, down substantially from their January peak.
The rise in January can be linked to image tools that were released this week for allowing users to virtually undress people in photos. The spread feature is over explicit images involving celebrities, influencers, and private individuals.
Regulators and lawmakers responded after reports said the system was also used on images of minors. Several countries temporarily restricted or blocked parts of the image-generation system over concerns tied to non-consensual deepfakes.
xAI subsequently restricted access to certain features. While it continued to popularize Grok, the data suggested it failed to create a substantial wave of new users.
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Weak paid adoption was also highlighted by research firm Recon Analytics. Only 0.174% of the more than 260,000 American AI users and workers said they paid for Grok in Q2 2026.
The number was nearly unchanged from a year prior, when it clocked in at 0.173%. However, the WSJ reported that more than 6% of respondents said they were paying for ChatGPT.
Grok Struggles to Gain Enterprise Traction
Enterprise software is a big new area of growth for AI companies. Numerous companies are employing AI tools for programming, business field tasks, and efficiency options.
Grok lags in that area of the market. In March, technology research firm Enterprise Technology Research polled roughly 500 respondents, and only about 7% said their companies were using Grok and intended to do so going forward.
The percentage was up from 4% the previous year. At the same time, however, Claude went up to 48% (from 21%), and Gemini rose to 40% (up from 27%).
Market analysts said developers and companies are adopting models with better coding tools, stability, and enterprise integration. Grok is having a harder time establishing that foothold, even with its reach through X.
Musk also characterized xAI as being a smaller company. During an April court hearing in connection with his lawsuit against OpenAI, he said xAI was “very small” and “the smallest of the AI companies.”
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