The news: Elon Musk’s X has lost another key figure in its advertising business, with ad chief John Nitti announcing his departure last week after joining just ten months ago, per the Financial Times.

Nitti’s departure signals a broader trend for the turbulent social platform as Musk shifts the focus away from fostering strong ad leadership and toward X’s AI initiatives.

Zooming out: The exit is another in a string of key leadership losses for X.

• Former CEO Linda Yaccarino resigned from X in July after playing a key role in convincing large brands to return to X. Yaccarino had previously claimed that over 96% of X’s previous top advertisers returned during her tenure.
• CFO Mahmoud Reza Banki departed X in October, while xAI general counsel Robert Keele and CFO Mike Liberatore departed in the summer.

Why it matters: Nitti’s exit hints at deeper turbulence for X and emphasizes the ongoing struggles the platform has faced since Musk’s takeover. While X’s ad revenues will start to turn around in 2025, revenues still remain slightly over half of what they were in 2021 pre-Musk, per our forecast. And another loss of a top advertising leader for the company signals that X faces a long path ahead in convincing advertisers to invest more heavily—a challenge exacerbated by ongoing brand safety concerns.

The strategy: Amid broader struggles generating ad revenues, X is going all-in on AI development.

• X was acquired by Musk’s xAI company earlier this year in a move intended to improve X’s ad products and ad business by training and enhancing content through user data. X simultaneously began restricting third-party access to its data for AI training to maintain a competitive edge for its AI assistant Grok.
• Grok is now integrated into the platform, while Musk announced in August that advertisers would soon be able to pay for placements in Grok’s recommended answers.
• Musk recently announced that its algorithm would soon be entirely powered by its Grok system, with the goal of better matching users with content they’re likely to engage with.

What it means for marketers: Another key loss signals that X’s ad strategy remains turbulent—and until its AI-powered ad focus proves valuable, ad investment should be executed with an air of caution.

The reality is that X’s controversial status remains: Its user-driven content moderation means X is frequently a hub for misinformation, and advertisers express concerns about its ability to effectively moderate harmful content and ensure brand safety. Without proof that AI will address and solve these concerns, brands are likely to continue viewing X as a risk.