Musk's xAI claims new Grok 3 model performs better than rivals

Elon Musk’s artificial intelligence (AI) company, xAI, claimed Tuesday that its newest model outperforms similar products from competitors like OpenAI and DeepSeek.

Musk's company unveiled Grok 3, the latest generation of its Grok AI model and the first to feature reasoning capabilities, during a launch event Tuesday on his social platform X Spaces.

Musk's xAI team said Grok 3 has 10 times more computing power than its predecessor and outperforms similar reasoning models, including OpenAI’s o1-mini and o3-mini models and DeepSeek’s R1 model, on a series of math, science and coding tests.

The AI firm also introduced its first AI agent, called Deep Search, which it described as a “next-generation search engine.”

The newest Grok release comes amid an increasingly contentious rivalry between Musk and OpenAI’s Sam Altman.

OpenAI’s board of directors on Friday rejected an unsolicited bid from Musk and a group of investors to buy the nonprofit that controls the AI firm for $97.4 billion.

The bid appears to have been an attempt by Musk to halt OpenAI’s plans to restructure as a for-profit company. The tech billionaire, who helped found OpenAI in 2015, said in a court filing last week that he would drop the bid if the company agreed to cease its for-profit shift.

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” OpenAI Chair Bret Taylor said in a post on X. “Any potential reorganization of OpenAI will strengthen our nonprofit and its mission to ensure AGI benefits all of humanity.”

Musk has repeatedly sued Altman and OpenAI over the plans to restructure, alleging that they have abandoned the company’s original mission to build AI with safety and transparency in mind.

While the two U.S.-based tech leaders feud, a new player has emerged in the AI space from China. DeepSeek exploded onto the scene last month with its R1 model, which it claims cost just $5.6 million to train and can outperform OpenAI’s latest models.

The emergence of the Chinese AI startup sent U.S. tech stocks tumbling, as investors cast doubt on the billions of dollars that American companies have funneled into building out infrastructure to develop AI.

However, leaders at OpenAI, Meta and Google have brushed off the threat from DeepSeek in recent weeks, voicing confidence in their massive investments in AI infrastructure.

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