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Rani Molla

Musk’s xAI is the latest to claim its new model is better than OpenAI’s

Another day, another AI model that’s supposedly better than that of industry leader OpenAI.

This week, xAI, which shares a CEO and a close relationship with Tesla, released its flagship model Grok 3, which is actually a family of models that are an “order of magnitude more capable than Grok 2.” Importantly, xAI claims it beats GPT-4o on common AI benchmarking tests.

Welcome to the club.

  • In January, DeepSeek’s R1 model beat OpenAI’s leading o1 reasoning model.

  • Later in January, Alibaba said its Qwen 2.5-Max outperformed GPT-4o and DeepSeek-V3.

  • Earlier this month, Baidu said its latest model, which powers its Ernie chatbot, matched OpenAI’s GPT-4 capabilities.

Importantly, some of these competitors — DeepSeek, Baidu — are offering their latest, greatest models for free to individual users. Much of OpenAI’s incredibly confusing product lineup is now free, though GPT-4o, the one supposedly comparable to Grok 3, costs $200 a month for full access.

Grok3? It’s available on X’s Premium+ subscription plan — whose price just doubled to $50 a month. Additional features will be available under a new paid plan.

Welcome to the club.

  • In January, DeepSeek’s R1 model beat OpenAI’s leading o1 reasoning model.

  • Later in January, Alibaba said its Qwen 2.5-Max outperformed GPT-4o and DeepSeek-V3.

  • Earlier this month, Baidu said its latest model, which powers its Ernie chatbot, matched OpenAI’s GPT-4 capabilities.

Importantly, some of these competitors — DeepSeek, Baidu — are offering their latest, greatest models for free to individual users. Much of OpenAI’s incredibly confusing product lineup is now free, though GPT-4o, the one supposedly comparable to Grok 3, costs $200 a month for full access.

Grok3? It’s available on X’s Premium+ subscription plan — whose price just doubled to $50 a month. Additional features will be available under a new paid plan.

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tech
Rani Molla

Tesla investors like the idea of merging with SpaceX

Tesla is trading up about 2.5% in early trading Friday after reports Thursday that the Elon Musk-led company was considering a merger with SpaceX, another of Musk’s many companies.

That’s a better showing than the stock’s reaction to its better-than-expected earnings a day earlier, after which shares closed down 3.5%. Acquiring a very valuable, entirely different company, it turns out, is a more attractive prospect than watching an existing one’s revenue and profit decline.

Musk is also reportedly considering merging SpaceX with xAI, his artificial intelligence company, which recently combined with his social media platform, X.

Musk is also reportedly considering merging SpaceX with xAI, his artificial intelligence company, which recently combined with his social media platform, X.

tech
Jon Keegan

WSJ: OpenAI plans Q4 IPO in race to be the first AI startup to enter public markets

OpenAI was the first to the generative-AI market with ChatGPT, and now it hopes to be the first of its AI startup cohort to pull off an initial public offering, according to a report from The Wall Street Journal. The $500 billion startup is in a race against its $350 billion competitor Anthropic, which has also been exploring an IPO.

Per the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever in a year that is expected to see many record-breaking tech companies tap into public markets to raise sizable new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half of that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

Per the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever in a year that is expected to see many record-breaking tech companies tap into public markets to raise sizable new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half of that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

tech
Rani Molla

SpaceX is actually considering a merger with Tesla or xAI: Report

Bloomberg reports that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today, Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

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