Elon Musk’s xAI Unveils Grok-3: A $22 AI Chatbot to Challenge ChatGPT and Google Gemini

Rahul Somvanshi

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Elon Musk’s company xAI released its newest chatbot Grok-3 in February 2025. This new chat tool aims to compete with popular services like ChatGPT and Google’s Gemini.

Grok-3 is much more powerful than the previous version. It runs on xAI‘s new Colossus computer system in Tennessee, which uses special chips to process information much faster than before. Think of it like upgrading from a regular laptop to a room full of super-fast computers.

The chatbot comes with new features including DeepSearch, a reasoning-based search engine that explains how it finds answers to questions. Users can ask it to help with research, come up with ideas, or look through data. 

“Grok-3 across the board is in a league of its own,” Musk said while showing off the tool during a live presentation. He called this version a “beta” – meaning it’s still being tested – and promised it would get better quickly. A voice interaction feature is planned for release in the coming days.

xAI claims Grok-3 works better than similar tools from Google, OpenAI, and other companies. But not everyone agrees. Gil Luria, who studies tech companies, says the improvements might not be worth all the resources used to create them.

Andrej Karpathy, who used to lead AI work at Tesla, tested Grok-3 and said it’s about as good as the best chatbots out there. But he also found it sometimes makes up facts and isn’t as good at certain tasks as other AI tools.

Users can try Grok-3 in two ways: through X (formerly Twitter) by paying $22 monthly for Premium+, or through a new service called SuperGrok. For comparison, ChatGPT’s most advanced version costs $200 per month.


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Behind the scenes, xAI is working on major developments. They’re in advanced talks with Dell for over $5 billion worth of specialized AI computers. The company is also trying to raise $10 billion from investors, which would make xAI worth about $75 billion.

This launch comes at an interesting time. Just recently, Musk tried to buy OpenAI, the company that makes ChatGPT, for $97.4 billion, but they said no. Meanwhile, a Chinese company called DeepSeek has shown it can make similar AI tools for less money.

xAI plans to share the code behind its previous versions once Grok-3 is working smoothly. This means other developers could learn from and build upon their work.

What makes Grok-3 important is how it shows AI tools are getting better at understanding and helping people. These improvements in AI technology could make research and data analysis tasks easier and more efficient.

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