Hours after the release of its latest AI model, Grok 3, xAI has significantly hiked the price of its top-tier Premium+ subscription plan, which grants users access to the latest model. The new pricing, which has been updated on xAI's support page, now stands at $40 per month in the U.S., with a yearly option available for $350.

This marks the second time xAI has raised the price of its Premium+ plan in the past couple of months. In December, the company increased the subscription amount from $16 to $22 per month. With the latest hike, Premium+ subscribers will now be paying more than double what they currently pay.

The price hike is not limited to the U.S. market, as xAI has also updated its pricing in other regions. In the UK, for instance, the Premium+ plan now costs £35 per month, up from £17, while in European countries like France and Germany, the price has risen from €21.00 to €38 per month.

It's worth noting that not all features of Grok 3 will be available to Premium+ plan users. xAI is putting some of the model's features, such as "deep search" and "reasoning," behind a separate SuperGrok plan, which can be accessed through the Grok app.

Interestingly, the pricing for the Premium+ plan appears to be inconsistent across xAI's platform. When attempting to sign up for the plan, the company's website displayed a monthly price of $39.83, which translates to $477.95 annually. However, the final check-out page listed a yearly price of $395. Furthermore, while the support page states that the monthly subscription costs $50, the sign-up page lists a price of $48.40 per month, and the check-out page charges $40 per month.

The inconsistent pricing has raised questions about xAI's approach to its subscription model. The company's decision to hike the price of its Premium+ plan so significantly, especially given the limited access to Grok 3's features, may impact user adoption and retention rates.

The development also highlights the importance of transparency in pricing and subscription models, particularly in the AI sector, where users are often reliant on access to cutting-edge technology. As xAI continues to evolve and expand its offerings, it will be crucial for the company to prioritize clarity and consistency in its pricing strategy.

xAI's move to hike the price of its Premium+ plan has significant implications for the broader AI industry, as it sets a new benchmark for subscription-based AI services. As the demand for AI technology continues to grow, companies will need to carefully balance their pricing strategies with the needs and expectations of their users.

In conclusion, xAI's decision to significantly hike the price of its Premium+ plan following the release of Grok 3 has raised important questions about the company's approach to its subscription model and the broader implications for the AI industry. As the sector continues to evolve, it will be crucial for companies to prioritize transparency, consistency, and user-centricity in their pricing strategies.