xAI is currently training its Grok 3 model, which is expected to be released by the end of 2024, as announced by Musk in a June tweet.

The competition in generative AI has intensified, with OpenAI securing $6.6 billion in funding in October 2023, further solidifying its market position.

Elon Musk's AI platform, xAI, has successfully completed a $6 billion Series C funding round, significantly boosting its valuation to over $40 billion, with estimates suggesting it could reach as high as $50 billion.

The new funds will be allocated to enhance AI infrastructure and develop xAI's flagship models, including Grok, which aims to compete with established players like OpenAI.

Since its founding in July 2023, xAI has rapidly expanded from 12 to over 100 employees and has relocated to OpenAI's former headquarters in San Francisco.

xAI has built the Colossus supercomputer, currently powered by 100,000 Nvidia H100 GPUs, with plans to double its capacity and eventually expand to one million GPUs.

The company plans to leverage data from Musk's other ventures, including Tesla and SpaceX, to enhance its AI models, despite facing criticism and legal challenges from Tesla shareholders.

Musk is competing with major tech companies like Microsoft, Google, Amazon, and Meta, all of which have made substantial investments in generative AI since the launch of ChatGPT in 2022.

As of October 2024, OpenAI is valued at approximately $157 billion, making it a significant competitor in the generative AI space.

Grok, xAI's main product, has been integrated into the social media platform X (formerly Twitter), providing capabilities for chatbots and image generation.

Musk recently introduced Grok 2 on X, which can generate text and images from natural language queries, raising concerns about the potential for misinformation.

Musk has accused OpenAI and Microsoft of anti-competitive practices that limit funding opportunities for alternative AI companies, framing this as part of xAI's legal challenges.