Musk’s xAI Rolls Out Grok-3 After $97 Billion Offer Rejection from OpenAI
Elon Musk’s artificial intelligence company, xAI, has introduced Grok-3, the latest version of its chatbot. The launch comes as xAI seeks to compete with OpenAI, Alphabet, and Chinese AI firm DeepSeek.
Last week, a group of investors led by Musk made a $97.4 billion offer to acquire OpenAI’s nonprofit assets, which was rejected. In response, OpenAI's Sam Altman took to Musk's social platform, X, with a lighthearted remark: "No thank you, but we'd be happy to buy Twitter for $9.74 billion if you want."
Musk Promotes Grok-3 Over Grok-2
Grok-3 is available to Premium+ subscribers on X, the social media platform owned by Musk. xAI has also introduced a new subscription plan, SuperGrok, for users accessing the chatbot through its mobile app and website.
🚨BREAKING NEWS!!!!
— The AI Colony (@TheAIColony) February 18, 2025
Elon Musk company xAI announces Grok 3.
It outranks the likes of OpenAI's GPT-4o, Claude 3.5, Deepseek V3, and Gemini 2 Pro!
Here is everything you need to know: pic.twitter.com/omC2pKjmj8
Musk said during a livestream that Grok-3 outperforms Grok-2. The chatbot includes a new feature called DeepSearch, a reasoning-based tool designed for research and data analysis, as reported by Reuters.
Meanwhile, xAI has seen internal tensions. Benjamin DeKraker, an AI engineer who worked on the Human Data team for six months, has resigned following a dispute over a social media post. He had ranked AI models, including xAI’s upcoming Grok-3, based on their coding capabilities. The disagreement over the post ultimately led to his departure, Cointelegraph reported.
no thank you but we will buy twitter for $9.74 billion if you want
— Sam Altman (@sama) February 10, 2025
xAI Expands Data Centers, Raises Funds
xAI is expanding its data center capacity and developing its Memphis-based supercomputer cluster, Colossus, which it claims is the largest in the world. The company is raising billions of dollars to support this effort.
Gil Luria, Managing Director at D.A. Davidson, said the improvements in Grok-3 give xAI a stronger position in the open-source AI market. However, he noted that the advancements may not justify the resources spent on training the model.