Elon Musk’s AI Company xAI Launches Grok 3 API Amid OpenAI Legal Battle
Billionaire Elon Musk has just been countersued by OpenAI, but that isn’t stopping his AI compahttps://techcrunch.com/2025/04/09/openai-attorneys-call-for-musk-to-be-enjoined-from-further-unlawful-and-unfair-action/ny, xAI, from making waves. The firm has just released an API for its flagship Grok 3 model, positioning itself against rivals like OpenAI’s GPT-4o and Google’s Gemini.
What’s New with Grok 3?
Months after its initial unveiling, Grok 3 is now available via API, offering:
✅ Multimodal capabilities (text & image processing)
✅ Enhanced reasoning (competing with Claude 3.5 Sonnet)
✅ Deep integration with X (Twitter)—which xAI acquired in March 2024
xAI is offering two versions of the model:
- Grok 3 (premium performance)
- Grok 3 Mini (cost-efficient alternative)
Pricing Breakdown
| Model | Input Tokens (per million) | Output Tokens (per million) |
|---|---|---|
| Grok 3 | $3 | $15 |
| Grok 3 Mini | $0.30 | $0.50 |
Faster versions are available at a premium, but Grok 3 isn’t cheap—it’s priced similarly to Anthropic’s Claude 3.5 Sonnet but costs more than Google’s Gemini 2.5 Pro.
🔍 Controversy Alert: xAI has faced criticism over misleading benchmark claims, and users report the API’s context window maxes out at 131K tokens—far short of the promised 1 million tokens.
How Does Grok 3 Compare to ChatGPT & Gemini?
Elon Musk initially pitched Grok as an “anti-woke” AI, willing to tackle controversial topics where others wouldn’t. Early versions (Grok 1 & 2) delivered on this promise, often using vulgar language when prompted.
However, studies found Grok leaned left on political issues—something Musk blamed on training data bias. He vowed to make Grok more “politically neutral,” but it’s unclear if Grok 3 achieves this.
Why Does This Matter?
- Legal Drama: Musk’s countersuit with OpenAI adds intrigue to xAI’s moves.
- AI Arms Race: With GPT-4o, Gemini 2.5, and Claude 3.5 dominating, can Grok 3 compete?
- X Integration: Since xAI now owns X (Twitter), expect deeper AI-social media fusion.
Final Verdict: Should You Use Grok 3 API?
If you need a high-performance, Musk-backed AI and don’t mind the premium pricing, Grok 3 could be worth testing. But with Google and OpenAI offering stronger benchmarks, the competition is fierce.
