Elon Musk’s AI startup, xAI, revealed the upgraded Grok-3 model, claiming it to be the “smartest AI on Earth.” Grok-3 outperforms major competitors, including Google’s Gemini, DeepSeek’s V3, Anthropic’s Claude, and OpenAI’s GPT-4, across key benchmarks in math, science, and coding, according to a live stream on Monday. With over 10 times the computing power of its predecessor, Grok-3 completed its pre-training in January. Musk emphasized that improvements are constantly being made, with changes appearing every 24 hours.

The company also launched DeepSearch, a new smart search engine integrated into Grok-3. DeepSearch is a reasoning-driven chatbot that explains its thought process and response strategy, offering options for research, brainstorming, and data analysis. Grok-3 is now available to Premium+ subscribers on X, and xAI is introducing a new subscription tier, SuperGrok, for the Grok mobile app and website.

Grok-3 positions xAI ahead of OpenAI’s latest ChatGPT, intensifying the rivalry between the two companies. Musk founded xAI in 2023 as a competitor to OpenAI, which he has criticized for its shift toward a for-profit model. Musk has filed two lawsuits against OpenAI for allegedly deviating from its original mission and even offered $97.4 billion to buy OpenAI’s nonprofit arm, a bid that was rejected last week. Musk was involved in OpenAI's founding but distanced himself from the organization in 2018.

xAI has rapidly raised funds, with a valuation expected to reach $75 billion, up from $51 billion. OpenAI is also raising funds, aiming for a valuation of up to $300 billion. Both companies are investing heavily in AI infrastructure, with major firms like SoftBank, Oracle, and Dell Technologies contributing billions toward building data centers.

However, emerging technologies, such as DeepSeek’s new open-source AI model R1, could pose challenges to this model. DeepSeek’s R1 has matched or surpassed US rivals on various benchmarks, and the company claims to have built the model at a significantly lower cost than its American competitors.

Disclaimer: This image is taken from Business Standard.