Artificial intelligence startup, xAI, has launched Grok-3, the latest version of its chatbot, aiming to compete with Chinese AI company DeepSeek, Microsoft-backed OpenAI, and Alphabet’s Google.
The debut of Grok-3, which is claimed to be the ‘smartest AI on Earth’, comes at a crucial time in the AI sector, following DeepSeek’s recent open-source model release, as xAI’s founder Elon Musk seeks to expand is market presence, reported Reuters.
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The Grok-3 chatbot is now available to Premium+ subscribers on X, Musk’s social media platform.
Additionally, xAI is introducing a new subscription tier, SuperGrok, for users accessing the chatbot via its mobile app and Grok.com website.
“Grok-3 across the board is in a league of its own,” Musk has reportedly stated during a livestream with three xAI engineers, noting its superior performance compared to Grok-2.
As AI competition heats up, xAI is expanding its data centre capacity to develop more advanced models, raising billions of dollars.
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By GlobalDataThe company’s Colossus supercomputer cluster in Memphis, Tennessee, is claimed to be the largest in the world.
The new release features a smart search engine, DeepSearch, described by xAI as a reasoning-based chatbot capable of explaining its thought process in user queries.
During the livestream, the tool was demonstrated to offer functions for research, brainstorming, and data analysis.
Recently, a consortium of investors led by xAI proposed a $97.4bn unsolicited bid to acquire OpenAI’s nonprofit assets, an offer that was rejected by the ChatGPT-maker.
Musk, who left OpenAI before it became a major player in the technology industry, has been vocal about his discontent with the company’s shift from its nonprofit origins to a for-profit model.
He has accused OpenAI of abandoning its initial mission to act as a charity focused on openness and safety in AI development.
Earlier in February 2025, xAI reportedly sought a $10bn funding round, valuing the company at approximately $75bn, with existing investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners in discussions to participate.
