TLDR:
- xAI released Grok 3, featuring enhanced reasoning capabilities and claiming superior performance over competitors like GPT-4o and Gemini on various benchmarks
- The model was trained using 200,000 GPUs in Memphis, with “10x” more computing power than Grok 2
- New features include DeepSearch for internet analysis and upcoming voice mode, with access through Premium+ X subscription ($50/month) or SuperGrok plan ($30/month)
- xAI plans to open-source Grok 2 once Grok 3 is stable, continuing their pattern of open-sourcing previous versions
- The company is in talks to raise $10 billion at a $75 billion valuation, while securing a $5+ billion deal with Dell for AI-optimized servers
Elon Musk’s artificial intelligence company xAI unveiled its latest AI model, Grok 3, on Monday, February 17, 2025, introducing new capabilities and features for both iOS and web applications.
The release marks a major update to xAI’s flagship product, which was developed in a massive data center in Memphis housing approximately 200,000 GPUs.
According to Musk, the new model utilized ten times more computing power than its predecessor, Grok 2, and incorporated an expanded training dataset that includes court case filings.
Cool!
And Grok 3 is coming soon. Pretraining is now complete with 10X more compute than Grok 2. https://t.co/54j81EEOF5
— Elon Musk (@elonmusk) January 4, 2025
During a live-streamed presentation, Musk introduced Grok 3 as a family of models, including a smaller version called Grok 3 mini, which prioritizes speed over accuracy. The company claims its new model outperforms OpenAI’s GPT-4o and Google’s Gemini on several benchmarks, including AIME for mathematics and GPQA for PhD-level science problems.
Two specialized models within the Grok 3 family, Grok 3 Reasoning and Grok 3 mini Reasoning, feature enhanced problem-solving capabilities. These models can “think through” problems systematically, similar to OpenAI’s o3-mini and DeepSeek’s R1. xAI reports that Grok 3 Reasoning has exceeded the performance of o3-mini-high on multiple benchmarks, including the AIME 2025 mathematics test.
— xAI (@xai) February 18, 2025
The Grok app now includes a “Think” function for standard queries and a “Big Brain” mode for more complex problems. Some of the reasoning models’ thought processes are intentionally hidden to prevent knowledge extraction by other AI developers, a practice known as distillation.
DeepSearch
A new feature called DeepSearch has been integrated into the platform, designed to compete with OpenAI’s deep research tool. This function scans the internet and X (formerly Twitter) to analyze information and generate abstracts in response to user queries.
Access to Grok 3 will be available first to X’s Premium+ subscribers, who pay $50 per month. Additional features will be accessible through a new SuperGrok plan, priced at $30 monthly or $300 annually, which includes unlimited image generation and extended access to reasoning and DeepSearch capabilities.
The company announced plans to add voice mode to the Grok app within approximately one week. Enterprise API access to Grok 3 models and DeepSearch functionality is expected to follow a few weeks later.
In line with xAI’s commitment to open-source technology, Musk confirmed plans to release Grok 2’s source code once Grok 3 reaches maturity, estimated to occur within a few months.
AI Sector
The development of Grok 3 comes amid substantial financial movements in the AI sector. xAI is reportedly in discussions to raise approximately $10 billion in funding, which would value the company at around $75 billion. Additionally, Dell Technologies is near finalizing a deal exceeding $5 billion to supply xAI with specialized AI servers.
The competitive landscape continues to evolve, with OpenAI pursuing up to $40 billion in funding at a potential $300 billion valuation. Meanwhile, Chinese AI company DeepSeek recently introduced its R1 model, claiming comparable performance to leading U.S. competitors at a fraction of the cost.
Grok 3’s release arrives during ongoing tensions between Musk and OpenAI. Musk has filed two lawsuits against his former company and recently made an unsuccessful $97.4 billion offer to acquire OpenAI’s nonprofit arm. OpenAI CEO Sam Altman dismissed the bid as an attempt to impede the company’s progress.
The infrastructure requirements for AI development remain substantial. A recent initiative involving SoftBank Group, OpenAI, Oracle, and Abu Dhabi-backed MGX announced plans to invest $100 billion in AI infrastructure, with potential expansion to $500 billion.
Users can expect continuous improvements to Grok 3, with xAI engineers promising updates within 24-hour cycles. The model’s performance claims across mathematics, science, and coding benchmarks await independent verification.
