Elon Musk’s artificial intelligence startup, xAI, officially launches Grok-3, its latest AI chatbot model, aiming to outperform OpenAI’s ChatGPT, Google Gemini, and DeepSeek’s V3. Musk, alongside his xAI team, showcased Grok-3 in a live stream on Monday, where he described it as the “smartest AI on Earth.”
Grok-3 has over 10 times the computing power of its predecessor and completed pre-training in early January. The model outperformed its rivals across multiple benchmarks, including math, science, and coding. “We’re improving the models every day, and within 24 hours, you’ll see enhancements,” Musk said during the event.
DeepSearch and Subscription Rollout
Alongside Grok-3, xAI introduced DeepSearch, a smart reasoning chatbot designed for more accurate research, brainstorming, and data analysis. Unlike traditional chatbots, DeepSearch reveals its thought process while responding to queries.
Grok-3 is being made available immediately to Premium+ subscribers on X (formerly Twitter). Additionally, xAI announced a new subscription tier called SuperGrok, which will offer the chatbot via the Grok mobile app and Grok.com.
A Growing Rivalry With OpenAI
The launch of Grok-3 intensifies Musk’s long-running feud with OpenAI. In 2023, Musk founded xAI as an alternative to OpenAI, which he has criticized for shifting from a nonprofit to a profit-driven model.
Last week, OpenAI rejected Musk’s $97.4 billion buyout bid. OpenAI CEO Sam Altman dismissed the offer as a tactic to slow the company down. Meanwhile, Musk has filed two lawsuits against OpenAI, accusing it of straying from its founding mission.
The Race for AI Dominance
xAI is currently in talks to raise about $10 billion, which would push its valuation to nearly $75 billion. Meanwhile, OpenAI is aiming for a $40 billion funding round, which could see its valuation soar to $300 billion.
With the AI industry becoming increasingly capital-intensive, major players like SoftBank, Oracle, Dell, and Abu Dhabi-backed MGX are investing heavily in AI infrastructure. In January, SoftBank announced a $100 billion program to develop AI-focused data centers. Dell is also finalizing a deal worth over $5 billion to supply Musk’s xAI with AI-optimized servers.
Also read: Elon Musk to Unveil ‘Scary Smart’ Grok 3 AI
However, new competitors are emerging. Chinese AI firm DeepSeek recently introduced R1, an open-source AI model that rivals US counterparts at a fraction of the cost.
With Grok-3’s launch, Musk is doubling down on his ambition to lead the next phase of AI innovation, setting the stage for an intense battle between xAI, OpenAI, and global competitors.
