Summary

Elon Musk’s artificial intelligence company xAI aims to release a standalone chatbot app next month, putting it in direct competition with established AI companies for the first time, according to a Wall Street Journal report.

Currently, xAI’s chatbot Grok is only accessible to subscribers of Musk’s social media platform X. The planned app will make the service more widely available.

xAI will face stiff competition in the AI ​​chatbot market, where companies like OpenAI, Google, Meta, Microsoft, and Anthropic have already established their products and built large user bases.

Building computing power

To compete effectively, xAI has invested heavily in computing infrastructure. The company built a massive data center called “Colossus” in Memphisinstalling 100,000 Nvidia GPUs in just 122 days—making it one of the largest AI chip clusters in the world.

gave The Wall Street Journal reports xAI has raised a total of $11 billion after its latest funding round with a $50 billion valuation. This makes it the second most valuable private AI company after OpenAI. The company secured $6 billion in funding this May.

According to the report, xAI Colossus plans to double its Nvidia chip count in the facility and seek additional funding next year.

However, xAI’s revenue lags far behind competitors. While OpenAI expects revenue of about $4 billion this year, xAI is targeting just $100 million — mostly from business with Musk’s companies.

Grok is playing catch-up.

The technical performance of xAI with Grok is still unmatched by its competitors. After an initial release in November 2023, xAI launched the second version of Grok in August.. Model Recently added photo recognition capabilities.– A feature Chat GPT And Claude implemented it long ago.

Musk has described Grok as less restrictive than other AI models.Claiming that he avoids OpenAI’s “political correctness” limitations. however, A recent study found that Grok’s responses to political issues are similar to those of ChatGPT..

The Grok-2 language model performs similarly to comparable commercial models such as GPT-4 And clade 3. But on the contrary ChatGPT’s search functionGrok gets new information only from X’s posts, not from the wider internet. And it sometimes turns user posts into ridiculous fake news.. gave Criticism of X for promoting fake news and hate speechthis limitation may limit Grok’s appeal beyond the platform’s user base.