Musk’s xAI launches Grok 3, expanding AI capabilities with deep search and reasoning

Elon Musk’s AI startup xAI has introduced Grok 3, the latest version of its chatbot model, which Musk describes as the most advanced AI system yet.

xAI claims Grok 3 outperforms rival AI models from Alphabet’s Google Gemini, DeepSeek’s V3, Anthropic’s Claude, and OpenAI’s GPT-4o in benchmarks for math, science, and coding.

“About a month ago, Grok 3’s pre-training was completed, and since then, we’ve been working hard to integrate reasoning capabilities into the current Grok 3 model,” the company said during its launch event on Monday.

Musk, speaking alongside three xAI engineers in a live-streamed presentation, said Grok 3 has more than ten times the compute power of its predecessor.

DeepSearch and enterprise push

xAI also introduced DeepSearch, an AI-powered intelligent search engine that functions as a reasoning-based chatbot, explaining its thought process when interpreting queries and formulating responses.

Building on these capabilities, the company plans to roll out Grok-3’s API in the coming weeks, expanding its reasoning and deep search features.

The move signals xAI’s broader push into the enterprise and developer markets, where AI-driven automation and decision-making tools are in high demand.

“Grok 3 is stepping into a fiercely competitive arena alongside ChatGPT and Microsoft Copilot, and its success will depend on real-world performance in code generation, automation, and enterprise AI workflows,” said Abhivyakti Sengar, senior analyst at Everest Group. “If xAI delivers on its promises, it could disrupt the market. However, before enterprises integrate Grok 3, CIOs must rigorously evaluate its security and compliance measures.” 

Grok 3 is now available to Premium Plus subscribers on X. xAI is also launching a new subscription tier, SuperGrok, which will provide access via the Grok mobile app and website.

The company is also developing a voice interaction feature aimed at enhancing conversational AI experiences, further expanding its capabilities beyond text-based interactions.

Intensifying AI competition

Grok 3’s launch comes as competition in the AI sector intensifies, with companies racing to develop more powerful and efficient models. Industry analysts see Grok-3’s release as a pivotal moment in this landscape.

“With Grok 3, we expect to see a significant acceleration in R&D innovation across the AI landscape, as it solidifies its leadership position against established players like OpenAI and Google,” said Prabhu Ram, VP of the industry research group at Cybermedia Research. “Grok 3’s advanced capabilities will drive heightened enterprise interest in AI solutions, enabling greater efficiency and smarter decision-making.”

As xAI expands into search and enterprise AI applications, the battle for dominance in generative AI is set to escalate further.

Musk founded xAI in 2023 as a rival to OpenAI, a company he has openly criticized for shifting toward a for-profit model.

With Grok-3’s introduction and upcoming API launch, xAI is positioning itself as a serious contender in the AI market. However, its long-term success will depend on adoption rates, performance benchmarks, and its ability to meet enterprise security and compliance demands. “Understanding how it processes and stores data, ensuring confidentiality, and aligning with regulations like GDPR will be critical,” Sengar said. “A thorough security audit and close collaboration with xAI’s team can help mitigate risks and ensure a smooth deployment.”