X introduces usage-based pricing for API access

X has introduced a new usage-based pricing model for access to its application programming interface, replacing the flat monthly subscription fees previously required for developers.

The API will allow third-party developers to build applications that use data and features from the X platform. In recent years, several external apps and services shut down after X significantly increased API access costs. This move limited large-scale data use by developers, including artificial intelligence projects.

Under the revised structure, developers are charged based on the amount of API data they use, rather than a fixed monthly fee. Costs increase with activity levels, allowing developers to scale usage according to demand.

The developers who purchase API credits may also receive additional credits tied to their spending during a billing cycle. The developers who exceed certain usage thresholds are expected to be eligible for xAI API credits worth up to 20% of their cumulative spend. These credits can be used to access xAI services, including its Grok chatbot.

The incentive links the platform’s developer ecosystem more closely with xAI, the AI company founded by Elon Musk. X and xAI have increased integration in recent months following Musk’s efforts to align his technology businesses.