Elon Musk’s artificial intelligence startup, xAI, released its updated Grok-3 model, which is a chatbot that competes with OpenAI’s GPT-4. According to xAI, Grok-3 outperforms other leading AI models, like those from Google (GOOGL) and Anthropic, in various benchmarks such as math, science, and coding. In addition, Musk claimed that Grok-3 has more than 10 times the computing power of its predecessor.
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xAI also introduced a new smart search engine called DeepSearch, which uses Grok-3 to provide more accurate and informative results. The company plans to release a voice-based chatbot and make previous versions of its Grok models open-source.
The launch of Grok-3 has now escalated the rivalry between xAI and OpenAI, which Musk co-founded but left in 2018. Indeed, Musk likely views the competition between the two as not just being about technology but about the future of artificial intelligence. This has led Musk to publicly criticize OpenAI’s plans to become a for-profit business and file lawsuits against the company. He also offered to buy the company’s nonprofit arm for $97.4 billion. Unsurprisingly, OpenAI rejected the offer.
Is Tesla Stock a Buy, Hold, or Sell?
Although retail investors cannot invest in xAI or most of Musk’s ventures, they can invest in his most popular company, Tesla (TSLA). When turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After an 84% rally in its share price over the past year, the average Tesla price target of $340.50 per share implies 4.4% downside risk.
