Aside from causing a stir in US politics, Elon Musk’s artificial intelligence venture xAI has now unveiled its latest AI chatbot, Grok 3, in a move some experts suggest could be a “significant milestone” in the AI race to rival existing models from the likes of DeepSeek, Google and OpenAI.
But what makes Grok 3 different from other AI models out there currently? Musk himself has boldly described it as the “smartest AI on Earth” in early testing, claiming it outperforms OpenAI’s ChatGPT in a variety of tests. Although Grok 3 is still in beta phase – and only accessible to premium+ users over on the X platform – it features ‘advanced reasoning’ capabilities to answer more complex questions.
Grok 3 appears to have “impressive performance” but is comparable to market leaders, says Dr Richard Whittle, University Fellow at the University of Salford’s Business School. “Grok 3 is xAI’s chance to compete against the market leaders, OpenAI, Anthropic and Google,” he explains.
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“It will likely be pricing models, rather than AI capability, which will determine if Grok 3 succeeds as a true challenger to established heavy hitters in this space.”
He continues: “It certainly seems that the AI race is accelerating. The launch of DeepSeek’s R1 model in late January, which provides a (reportedly) cheaper process to develop premium level models, sent shock waves through the American dominant AI industry. Commentators described it as a Sputnik moment which may catalyse AI firms to more rapid development
“Grok 3 has impressive capabilities – though with training that required a significant 200,000 GPUs (graphics processing units) – other AI firms will develop new offerings to keep up. We may look back to see DeepSeek and Grok 3 as significant milestones where AI development jumped further and higher.”
“Musk may have been playing for time”
Musk’s new AI model follows his recent unsolicited offer of nearly $100bn to takeover OpenAI, a company he co-founded, which was rejected by OpenAI’s board of directors. With the release of Musk’s Grok 3, there may have been an ulterior motive to stunt OpenAI’s growth into a for-profit company according to Dr Richard Whittle.
“The potential of a takeover of OpenAI by Elon Musk will give many institutions pause for thought. A technological infrastructure which is rapidly being incorporated into schools, universities and the public sector, could rapidly change and Musk’s transformation of Twitter to X may be an indicator of where OpenAI could go. A ‘Twitterfication’ of OpenAI may rewrite the rules on its use and outputs.
“However, it may have been that Musk’s offer for OpenAI was designed to slow its transition to profit making. Musk may simply have been playing for time, given he has today unveiled xAI’s latest model, Grok 3, which was initially supposed to have been available from December 2024. Musk claims his new model is the ‘smartest AI on earth’, with xAI declaring that Grok 3 beats OpenAI’s offerings on a variety of tests.”
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It’s a clear indication about where the AI race is heading, agrees Rhys Merrett, head of tech PR at The PHA Group: “The AI race has only just begun, so it’s difficult to say who the ultimate winner, or winners, will be. We are in the middle of a testing phase. Over time, we will see AI models falling out of the race and others being acquired by bigger entities.”
But the big challenge now is to boost the operational efficiency of AI models so they are “less resource-dependent” and can scale effectively without compromising on speed or accuracy, adds Merrett.
“This means tackling issues like high energy consumption, data privacy concerns, and the growing complexity of AI architectures. Models need to become smarter, leaner, and more adaptable to stay competitive.”
In an attempt to position Grok 3 as a superior model to its rivals, Musk is unsuprisingly tapping into the power of PR and his influence too. “Musk wants to drum up excitement and leverage his personality to demonstrate why Grok 3 is miles ahead of existing models like OpenAI and DeepSeek. It’s not just about the technology but about selling a vision, one that resonates with consumers and investors alike. In an industry driven by hype cycles and rapid innovation, perception is power.
“Only time will tell who truly comes out on top, but right now, Musk is playing into the hype around AI’s potential during this testing phase.”
