Hours after the release of its latest AI model, Grok 3, xAI has implemented a substantial price hike for its Premium+ subscription plan, catching users off guard. The monthly subscription fee for Premium+ has been updated to $50, with the yearly price jumping to $350, according to the company's support page.

This marks the second time xAI has raised the price for the Premium+ plan in just a few months. In December, the company increased the subscription amount from $16 to $22 per month. The latest price hike means Premium+ subscribers will now be paying more than double their current monthly fee.

The Grok 3 release has also led to some of its features being relegated to a separate SuperGrok plan, accessible through the Grok app. As a result, Premium+ plan users will only have access to select features, including "deep search" and "reasoning". This move has raised questions about the value proposition of the Premium+ plan and whether the increased cost is justified.

However, the pricing inconsistency on xAI's platform has added to the confusion. When attempting to sign up for the Premium+ plan, the company's website displayed a monthly cost of $39.83 ($477.95 annually), but the final check-out page quoted a yearly price of $395. Furthermore, the support page lists a monthly subscription cost of $50, while the sign-up page shows a price of $48.40 per month, and the check-out page charges $40 per month.

These discrepancies have sparked concerns about the transparency and fairness of xAI's pricing model. As the company continues to develop and release new AI models, it remains to be seen how these changes will impact users and the broader AI ecosystem.

The implications of this price hike are far-reaching, with potential consequences for xAI's user base and the adoption of its AI models. As the AI landscape continues to evolve, companies like xAI must balance the need to generate revenue with the need to provide value to their users. The success of Grok 3 and xAI's future plans will depend on the company's ability to strike this balance and maintain user trust.

In the meantime, Premium+ subscribers are left to weigh the benefits of the latest AI model against the significant increase in cost. As the dust settles, it will be important to monitor xAI's response to user concerns and its efforts to address the pricing inconsistencies that have arisen.