Elon Musk's xAI is set to launch a standalone app for its Grok chatbot by December 2024, aiming to compete directly with OpenAI's ChatGPT.

This initiative follows the introduction of Grok, an AI chatbot designed for X (formerly Twitter) subscribers, marking xAI's entry into consumer-facing products.

In addition to Grok, xAI is developing customer support features for Musk's SpaceX service, Starlink, as part of its broader strategy.

To support its ambitious plans, xAI operates a supercomputer named Colossus in Memphis, Tennessee, which is equipped with over 100,000 Nvidia GPUs and aims to double its capacity soon.

The company has secured at least $11 billion in investments to bolster its operations and is establishing a new data center in Tennessee.

Key investors in xAI include Fidelity, Larry Ellison, and Jack Dorsey, with projections indicating the company could exceed $100 million in annual revenue.

As of late November 2024, xAI's valuation has reached $50 billion, although it still trails behind OpenAI's valuation of $157 billion.

If the Grok chatbot gains traction, xAI may explore monetization strategies, potentially offering a paid version similar to OpenAI's subscription services.

For xAI to effectively compete with ChatGPT, it will need to deliver unique features that enhance user experience and integrate seamlessly with Musk's other ventures.

Currently, a free version of Grok is being tested in select regions, including New Zealand, allowing limited queries under specific conditions.

Musk has been a vocal critic of OpenAI, previously banning the use of ChatGPT at Tesla's headquarters, highlighting the competitive tension between the two entities.

While details about the new chatbot app remain sparse, Musk recently hinted at the development of a new game studio by xAI, indicating ongoing innovation within the company.