Elon Musk’s AI Firm xAI Launches Grok 3, Claims It Outperforms Rivals

Mr. Musk has declared Grok 3 as the “smartest AI on Earth,” with xAI stating that benchmark tests indicate superior performance across science, mathematics, and coding compared to ChatGPT, as well as other leading AI models like Google’s Gemini, DeepSeek, and Anthropic’s Claude.

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During a livestream announcement, the billionaire entrepreneur—who also leads SpaceX and Tesla—emphasized that Grok 3 boasts more than 10 times the compute power of its predecessor. This substantial upgrade signals xAI’s determination to become a dominant force in the AI sector.

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Grok 3 will be available exclusively to Premium+ subscribers on X, Musk’s social media platform. Additionally, xAI is introducing a new SuperGrok subscription, which will provide access via a dedicated mobile app and website, expanding user accessibility beyond X.

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The Battle for AI Supremacy

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Mr. Musk’s assertion that Grok 3 outperforms ChatGPT has not been independently verified, but it escalates his ongoing rivalry with OpenAI and its CEO, Sam Altman. The dispute has deepened over the years, with Musk having filed two lawsuits against OpenAI, alleging the company has deviated from its original non-profit mission.

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Last week, Musk made an audacious $97.4 billion bid (£77.3 billion) to acquire OpenAI—an offer promptly rejected by Altman and OpenAI’s board. Altman dismissed the proposal as a mere ploy to hinder competition in the rapidly evolving AI landscape.

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The AI Investment Frenzy

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Despite this intense corporate battle, investor enthusiasm for AI firms remains high. Reports indicate that OpenAI is in discussions to raise $40 billion (£31.7 billion) in a new funding round, potentially pushing its valuation to $300 billion (£238 billion). Meanwhile, xAI is also attracting significant investor interest, reportedly seeking $10 billion (£8 billion) in funding, which could value the firm at $75 billion (£59.5 billion).

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The global AI arms race has largely been dominated by US-based companies, but the emergence of China’s DeepSeek as a cost-effective alternative is challenging that dominance. The increasing competition and investment highlight the unprecedented demand for advanced AI models and the critical role they will play in shaping the future of technology.

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Markelitics' Perspective

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From a market intelligence standpoint, the AI sector's rapid evolution is a testament to its unparalleled investment appeal. Markelitics analysts observe that while technical superiority and innovation are key drivers, regulatory concerns, ethical considerations, and market positioning will ultimately determine long-term success. xAI’s ability to secure substantial funding and refine Grok’s capabilities will be crucial in solidifying its position against established players like OpenAI and Google.

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As competition intensifies, the AI landscape remains a dynamic battleground where technological advancements and strategic investments will shape the industry’s future. Whether Grok 3 lives up to its bold claims or not, the AI race is far from over.

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