Elon Musk’s AI startup xAI has introduced Grok 3, its latest artificial intelligence model, as the company accelerates efforts to compete with leading AI models from OpenAI, Google, and Anthropic. The new model is positioned as a significant upgrade over its predecessor, boasting enhanced reasoning, coding, and search capabilities.
Grok 3 is designed to outperform major competitors such as Google’s Gemini, OpenAI’s GPT-4o, Anthropic’s Claude 3.5, and DeepSeek V3 in math, science, and coding benchmarks. While its performance compared to reasoning-focused models like OpenAI’s o3-mini and DeepSeek R1 remains unclear, xAI highlights several advanced features, including deep search for enhanced web searches, coding capabilities that support online game development, and big brain mode for tackling complex problems. The company also announced plans to introduce a voice mode, similar to the natural conversation feature available in competing AI models.
The model is immediately available to Premium+ subscribers on X, Musk’s social media platform, at a monthly cost of $40. Users can also access it through Grok’s standalone app and website.
AI Competition Heats Up
The release of Grok 3 comes as the AI industry experiences rapid growth, with tech giants investing heavily in larger data centers and more powerful models. The race to build stronger and more efficient AI systems is intensifying, particularly as AI tools begin to reshape internet search, software development, and workplace automation.
A new wave of competition is also emerging outside of Silicon Valley. The Chinese AI startup DeepSeek recently gained attention with its R1 model, which demonstrated the potential to train advanced AI models with greater efficiency. This has raised concerns among U.S. tech companies regarding the sustainability of current AI infrastructure investments. In response, xAI significantly increased its computing power, building Grok 3 with 10 times the resources used for its predecessor, Grok 2. The upgrade was made possible by the company’s new data center in Tennessee, which became operational last year.
Musk’s Expanding AI Ambitions
Beyond product development, Musk is actively working to expand his influence in the AI space. Recently, he led a $97 billion bid to acquire OpenAI, aiming to take control of the company behind ChatGPT. The offer was rejected, marking another chapter in Musk’s ongoing rivalry with OpenAI’s CEO, Sam Altman. Musk has repeatedly criticized OpenAI’s shift away from its original non-profit mission and has urged the company to open-source more of its technology.
While OpenAI remains firm on its direction, xAI has indicated a willingness to embrace transparency—though on its own terms. Musk’s company plans to release the code for Grok 2 once Grok 3 reaches a stable and mature stage.
As competition in AI continues to escalate, xAI’s latest release signals a growing push to challenge established players and reshape the future of artificial intelligence.