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.
The 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.
