Elon Musk, CEO of xAI, revealed that the company will release its latest AI model, Grok 3, on Monday. Musk calls it the smartest AI on earth. Users across social media are anticipating Grok 3’s capabilities, given that it has been trained on 100,000 NVIDIA GPUs, ten times more computing power than its predecessor.
In addition to the release of Grok 3, xAI is reportedly in talks to raise $10 billion in funding. Bloomberg reported this on Saturday and said Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners will participate in the round. This will increase xAI’s valuation to $75 billion.
In December last year, the company completed a $6 billion Series C funding round, with participation from firms such as Andreessen Horowitz, BlackRock, Sequoia Capital, NVIDIA, and AMD. xAI is currently valued at $51 billion.
Furthermore, Bloomberg reported on Friday that xAI is in the ‘advanced stages’ of securing a deal worth over $5 billion with Dell Technologies for servers. Dell will reportedly sell xAI servers containing NVIDIA GB200 this year to handle AI workloads.
Moreover, xAI’s GPU cluster Colossus is claimed by the company to be the world’s most powerful AI training system. Musk notes that this cluster was built in 122 days from start to finish. According to an earlier report from Financial Times, xAI plans to expand Colossus by over ten times to include more than 1 million GPUs.
However, given how DeepSeek disrupted the market by building an AI model with significantly fewer GPUs and beating most of the competition, NVIDIA lost over $500 billion in its market cap as shareholders questioned the demand for AI hardware.
Grok 3 might answer the question of how much an AI model can improve by incorporating exponentially higher amounts of computing power, contributing new evidence to the ongoing debate about AI scaling laws.
When AIM reached out to Paras Chopra, founder of Lossfunk, he said, “Performance is often log-linear. So I’d say 10x more compute would have a ~double jump in performance over Grok 2.”
Currently, Grok AI is available for free as a chatbot on X.com. It will have to compete not only with the existing models but also with the upcoming hybrid model by Anthropic and GPT 4.5, which is part of OpenAI’s newly released roadmap.
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