In a bold move that has sparked both interest and controversy, xAI has launched Grok 3, its latest AI model, with claims of being the world's smartest AI. However, the release has been met with mixed reactions, particularly regarding its significant price increase and actual performance capabilities compared to existing AI solutions.
The Technical Leap
Grok 3 represents a substantial computational advancement, trained using 200,000 Nvidia H100 GPUs - ten times the computing power of its predecessor. The training process was split into two phases: 144 days with 100,000 GPUs initially, followed by 92 days with the full 200,000 GPU array. This massive infrastructure investment has resulted in notable improvements in processing speed and capability.
Performance Reality Check
While xAI's benchmarks suggest Grok 3 outperforms most competitors except OpenAI's upcoming o3 model, real-world testing tells a more nuanced story. The model shows competence in day-to-day tasks but struggles with more complex challenges. Notable AI experts, including former Tesla AI director Andrej Karpathy, position Grok 3's capabilities somewhere between DeepSeek R1 and OpenAI's o1-pro - solid but not revolutionary.
Pricing Controversy
The launch has been particularly contentious due to its pricing strategy. Access to Grok 3 requires either a USD 40 monthly X Premium+ subscription (up from USD 22) or a USD 30 monthly SuperGrok subscription. This positions it at roughly double the industry standard of USD 20 charged by competitors like Gemini Advanced, ChatGPT Plus, and Perplexity Pro.
Feature Set and Limitations
Grok 3 introduces new capabilities including a DeepSearch feature and a reasoning model. However, it lacks several features common to mature AI platforms, such as voice mode. The Think feature, while promising, typically requires around 2 minutes to generate responses - a significant wait time for users. Additionally, the faster Grok 3 mini version and API access are still pending release.
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| Screenshot demonstrating Grok 3's DeepSearch feature in action |
Market Impact
In an unexpected twist, xAI announced temporary free access to Grok 3 until servers crash, creating frustration among recent Premium+ subscribers who had just paid the increased subscription fee. This move, while potentially aimed at competing with DeepSeek's recent success, has raised questions about xAI's long-term pricing strategy and commitment to paid subscribers.
The Team Behind Grok
The development team notably features significant Chinese talent, including 95-born Yuhuai Wu and Jimmy Ba as key technical leads. This international collaboration highlights the global nature of AI development, even as geopolitical tensions affect the technology sector.