Final week, Elon Musk posted one other daring declare on X:
It’s straightforward to dismiss this as traditional Musk. In any case, he’s been recognized to make sweeping statements about his personal tech that usually include extra hype than substance.
However right here’s the factor…
This time, he is likely to be proper.
Pace Like No Different
Up to now six months, xAI has launched three main fashions: Grok 3, Grok 4 and Grok 4 Heavy.
To place that in perspective, OpenAI took practically a yr to maneuver from GPT-4 to GPT-4o. Google’s Gemini 1 debuted in late 2023, however Gemini 2.0 didn’t arrive till early 2025. And Anthropic’s Claude collection has had regular releases, however they’ve been nowhere close to this aggressive.
In different phrases, Musk’s group is iterating at a tempo that the remainder of the trade isn’t matching.
And that’s largely on account of Colossus, xAI’s GPU supercomputer.
Nvidia’s H100 chips are the gold commonplace for coaching AI fashions, however international demand has created a scarcity. Musk anticipated this crunch and secured large H100 orders early by means of Tesla and SpaceX.
By funneling these chips into xAI, he gave Grok entry to extra uncooked compute than most of his rivals can dare to dream of.
When Grok 3 was launched in February, it was educated utilizing 10 instances extra compute than Grok 2.
By July, simply 5 months later, Grok 4 Heavy was dwell and positioned as a frontier-class mannequin that would compete with anything available on the market.
And on paper, Grok 4 Heavy is a significant step ahead.
It scored 44.4% on Humanity’s Final Examination, a notoriously powerful benchmark designed to measure reasoning underneath stress.
Supply: https://x.com/Prashant_1722
That positioned it forward of Google’s Gemini 2.5 Professional and OpenAI’s o3.
For subscribers keen to pay $300 a month, xAI even affords “SuperGrok Heavy.” To me, this premium providing proves that Musk places a excessive worth on uncooked efficiency.
However pace and efficiency aren’t the one differentiators right here.
You see, Musk wired Grok straight into X. Meaning thousands and thousands of customers stress-test the system in full view of the world on daily basis.
That’s a high-risk, high-reward technique.
On the plus aspect, it provides xAI a suggestions loop that’s extra public and unfiltered than something its rivals enable. And since it pulls straight from the firehose of X information, Grok is ready to keep culturally related in methods its rivals can’t.
However the draw back is painfully apparent.
Once you construct in public, you too can fail in public. And Grok has taken some massive “L”s.
Earlier this yr, Grok generated antisemitic content material, together with one notorious second the place it described itself as “MechaHitler.”
Musk blamed it on a regression bug.
And simply this month, Grok’s primary account was suspended after it posted hate speech associated to genocide.
Musk known as it a “dumb error.”
However for critics, these incidents are proof that Grok’s security techniques lag behind its pace.
And its issues don’t cease there.
Just lately, reviews present that Grok’s “share” characteristic left over 300,000 person conversations uncovered to serps, together with many who had been by no means meant to be public.
A few of them contained harmful content material, like bomb-making directions, recommendation on self-harm and even assassination plots in opposition to Musk.
This can be a clear failure of privateness and content material management. And it highlights one of many largest challenges within the AI race…
Benchmarks matter, however belief issues extra.
Benchmarks can’t erase reputational injury. They usually don’t fulfill regulators both.
That’s why OpenAI, Google, and Anthropic all make investments closely in alignment groups and security checks designed to catch unhealthy habits early. They’ve additionally labored carefully with U.S. and European regulators on AI security requirements.
That’s simply good enterprise.
As a result of companies and governments solely need to work with AI fashions that they consider are secure, predictable and aligned with regulatory frameworks.
However Musk tends to deal with laws as roadblocks.
Which may win him followers on X. It would even be what’s required to beat China to synthetic superintelligence (ASI).
Nevertheless it might additionally shut xAI out of precisely the sorts of enterprise and authorities offers that resolve who wins the AI race.
Due to this, I consider OpenAI, Google and Anthropic nonetheless maintain a bonus.
So the place does that depart Musk’s declare?
Proper now, xAI is sprinting forward on iteration pace, utilizing sheer compute energy to shut the hole. And that’s one thing his rivals ought to be frightened about.
However the AI race is a marathon, not a dash.
OpenAI already has deep enterprise adoption by means of Microsoft, placing its fashions inside the whole lot from Azure to Phrase.
Google bundles Gemini throughout Gmail, Docs and Search, and now it’s integrating into the Android working system because the alternative for Google Assistant.
In the meantime, Anthropic has Amazon behind it, with Claude built-in into AWS.
These are ecosystems. And ecosystems can create moats round companies.
However for now, Musk solely has X.
As we’ve talked about earlier than, for xAI to “outpace” its rivals, Grok might want to scale past a single social platform.
As a result of pace alone received’t win the AI race.
Right here’s My Take
Elon claims Grok is evolving quicker than some other AI.
And I agree with him.
xAI has confirmed it could possibly transfer quicker than anybody else. And if Grok continues to submit benchmark good points at this tempo, the remainder of the trade might find yourself chasing its lead.
However to win the AI race, Musk might want to show that Grok has endurance. And that may come from the affected person work of proving that his AI is secure and enterprise-ready.
If he can do this, his current submit received’t seem like hyperbole in any respect.
But when he can’t, then Grok might find yourself being remembered because the quickest runner in a race of its personal.
For traders, although, it doesn’t essentially matter who wins this race….
So long as you might be invested within the infrastructure and energy wanted to maintain it operating.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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