xAI launches Grok-Beta API amidst challenges

Elon Musk’s xAI has officially launched its API for Grok, the company’s generative AI model, though it’s currently in a limited form. The API, which provides access to a single model called ‘grok-beta,’ is priced at $5 per million input tokens and $15 per million output tokens. Tokens are small data segments, and while the API mentions both Grok 2 and Grok mini, it remains unclear which model ‘grok-beta’ is based on. The API also supports function calls, which allows the AI to interact with external tools like databases, with potential plans to add image analysis capabilities.

Musk’s xAI was founded last year and has made waves with Grok, known for its edgy and provocative responses, in contrast to more conservative AI models like ChatGPT. Available to X Premium+ users at $16 per month, Grok has already integrated into the X platform, generating images through Flux and summarising news, although often inaccurately. There are plans to expand Grok’s features to enhance search, post analytics, and other functions on X.

While xAI is racing to compete with AI giants like OpenAI and Anthropic, it has attracted significant financial backing, raising $6 billion from major investors, including Andreessen Horowitz and Sequoia Capital. Musk claims that data from X gives xAI an advantage and recent privacy policy changes allow the company to train its models using user posts. There’s also a broader vision to leverage data from Musk’s other ventures, such as Tesla and SpaceX, to enhance AI technologies across these companies.

However, not everyone is on board with Musk’s ambitious plans. Tesla shareholders have filed lawsuits, arguing that xAI is siphoning resources and talent away from Tesla. The startup faces environmental concerns at its Memphis data centre, where unauthorised turbines have been linked to smog issues. xAI plans to upgrade the facility next year, pending regulatory approval from the Tennessee Valley Authority.