Billionaire Elon Musk has long held a grudge against his OpenAI co-founder Sam Altman, accusing the latter of abandoning the founders’ original vision of open-source AI in favour of more commercial pursuits.

Musk doesn’t just publicly criticise Altman on X. He has also taken the OpenAI CEO to court for allegedly violating their agreement that OpenAI would remain a nonprofit working for the good of humanity.

The bitter feud between the two figureheads may have prompted Musk to start his own AI venture, xAI, creator of the powerful chatbot, Grok-3.

Never one to shy away from grand proclamations, Musk has declared Grok-3 “in a league of its own” during a livestream with xAI engineers. And, if everything goes according to plan, he said, it will be integrated into SpaceX’s Starship rockets within two years for missions to Mars.

Grok-3 is already making waves. It is the first AI model to achieve a score of 1,400, surpassing OpenAI’s GPT-4o (1,377) and Gemini 2.0 Flash (1,385). This suggests that xAI’s technology is quickly gaining ground on the industry’s established leaders.

Beyond general intelligence, Grok-3 has been trained on a vast dataset, including legal precedents and doctrines. Musk claims this enables it to deliver “extremely compelling legal verdicts,” hinting at potential applications in the legal sector.

The story of xAI: From research to commercialisation

Founded in July 2023, xAI initially positioned itself as a research-driven entity with a grand vision: to “understand the true nature of the universe”.

While this may sound philosophical, it translates into an approach that prioritises scientific discovery alongside AI development.

However, Grok’s release marks a shift towards commercialisation – an inevitable move to attract investment, generate revenue, and solidify xAI’s market position.

If xAI had remained purely focused on theoretical AI research, it might have struggled to gain traction in a highly competitive field.

Instead, Musk is now testing a monetisation model that could turn xAI into a financially sustainable venture. The chatbot’s success in driving subscriptions will be a key indicator of whether this strategy pays off.

Safety, strategy, and a ‘rebellious’ AI personality

Musk has long been an outspoken advocate for AI safety, frequently warning about the risks of unchecked AI development.

xAI reflects this philosophy, with safety and alignment with human values forming the backbone of its mission. This focus differentiates xAI from its competitors, whose priorities often tilt more towards rapid commercial expansion.

One of Grok’s standout features is its personality. Unlike the typically neutral, formal tone of most AI chatbots, Grok incorporates humour and a hint of irreverence – arguably reflecting Musk’s own communication style.

This approach makes Grok distinct but also raises questions about how it will be received by users accustomed to more conventional AI assistants.

Can xAI avoid OpenAI’s path – or, will it?

xAI is still in its early days, but it has assembled a powerhouse team of AI researchers and engineers from DeepMind, OpenAI, Google, Microsoft Research, and the University of Toronto.

The company’s trajectory suggests an ambition to develop Artificial General Intelligence – a goal shared by only a handful of AI startups globally.

However, a crucial challenge remains: balancing safety and performance while securing a sustainable revenue stream.

Musk’s ventures often start with an idealistic vision but eventually pivot towards commercial viability.

Will xAI maintain its commitment to truth-seeking AI, or will it follow OpenAI’s path towards profit-driven expansion – the same path Musk himself has criticised?