Elon Musk’s xAI Takes On OpenAI’s Chatgpt with New Grok API Release

Musk’s Latest AI Venture Expands: Grok API Launched with a Rebel Spirit

Elon Musk’s AI startup, xAI, has taken another step into the AI landscape with the release of an API for its Grok chatbot, integrated within X (formerly Twitter).

The API, launched this week, allows users to access Grok for a fee of $5 per million input tokens or $15 per million output tokens—potentially a bargain for heavy users of generative AI.

However, there’s some uncertainty about what buyers are actually getting.

The sole available model is “grok-beta,” and its connection to the latest Grok 2 model remains unclear.

Adding to the confusion, reports suggest that models designed to analyse both images and text are not yet live, despite being referenced in documentation.

What is Grok Offering?

Grok began its journey on X last year, gradually being embedded into the platform as a chatbot accessible to X Premium users.

With its promise to be less restricted than other AI tools, Grok has gained attention for its so-called "rebellious streak."

Unlike competitors, Grok has been designed to answer provocative or risqué questions, a feature that sets it apart from the more guarded, carefully moderated responses provided by systems like ChatGPT.

It’s this willingness to push boundaries that has drawn both intrigue and concern.

Elon Musk has described Grok’s tone as deliberately less “woke” than other systems, meaning it’s more likely to generate controversial or even inappropriate content.

This has led to numerous instances of problematic outputs from Grok, adding to its notorious reputation on X.

API Functionality: More Than Just Chat?

The xAI API, which finally became available this week after months of anticipation, promises more than just text-based interactions.

While the current offering is limited to the "grok-beta" model, hints from the documentation suggest that vision models capable of analysing both text and images may soon be added to the service.

The API also features function-calling capabilities, allowing the integration of Grok models with external tools like search engines and databases, further extending its utility beyond simple chatbot functionality.

However, early users have reported issues with purchasing credits for the API, and it remains unclear how the available “grok-beta” model fits within the broader Grok family.

Is this the latest Grok 2, or a transitional version?

Such questions remain unanswered as xAI continues to fine-tune its offerings.

Integration into X: A New Layer of Social Media

The chatbot is already deeply ingrained into X's user experience, accessible via a tab at the bottom of the screen for Premium+ subscribers, who pay $16 per month.

This integration has not been without controversy.

Thanks to its connection with the open image generator, Flux, Grok has the ability to generate images on X without the strict guardrails typically imposed on such tools.

This lack of filters has raised concerns about inappropriate or harmful content being generated.

Beyond that, Grok is starting to influence other aspects of X, from summarising news (though often inaccurately) to assisting with search functions and analytics.

Musk’s grand vision sees Grok playing a more central role in shaping the platform’s future, enhancing everything from user interactions to personalised content.

A Funding Windfall, But Not Without Pushback

In May 2024, xAI secured $6 billion in funding, with backers including investment heavyweights Andreessen Horowitz, Sequoia Capital, and Fidelity.

This infusion of cash is part of Musk's larger plan to elevate xAI’s status in the competitive AI landscape.

He’s consistently argued that X’s immense data pool provides xAI with a strategic advantage over its rivals.

Earlier this year, X updated its privacy policy to allow third parties, including xAI, to train their models on user posts from the platform.

This change raised eyebrows among privacy advocates but was pitched as a crucial move for refining the Grok models.

However, not everyone is thrilled with Musk's ambitious plans.

Tesla shareholders have raised legal challenges, accusing Musk of diverting both resources and talent from Tesla to xAI.

They argue that Musk’s AI venture competes with his existing companies, creating conflicts of interest.

This lawsuit is a sign of the tensions surrounding Musk’s ability to juggle his various business interests while keeping investors happy.

Environmental Concerns Surrounding xAI’s Data Centre

Beyond legal disputes, xAI’s data centre operations have also come under scrutiny.

The company is training the next generation of Grok models at its Memphis data centre, but this site has been accused of exacerbating local air pollution due to unauthorised turbines.

xAI aims to upgrade the facility in 2024, but this will require approval from the Tennessee Valley Authority, adding another hurdle to its expansion plans.

In the race to compete with AI giants like OpenAI and Anthropic, Musk’s xAI is sprinting forward.

However, the journey is fraught with challenges, both technical and ethical, as xAI’s ambitions collide with real-world concerns.