New Street Research analyst Pierre Ferragu has publicly expressed his support for Elon Musk-led xAI’s Grok, favoring it over rival platforms.
What Happened: On Thursday, Ferragu took to X, formerly Twitter, and shared a collage of screenshots. The screenshots showcased him asking “Can you draw for me an emoji of a smiley face exasperated by a situation and pointing a gun at its head,” to three different chatbots. However, Grok was the only chatbot that provided a satisfactory response to his query.
The other chatbots refused to comply with his request citing that the content could “promote self-harm and violence, which is not appropriate or safe.”
Sharing the image on the social media platform, Ferragu stated, “One of the reasons why Grok will eventually win: (full disclosure: I am an investor in Grok.)”
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Why It Matters: xAI transitioned its extensive language model to open source in March enabling entrepreneurs, programmers, or companies to use the model for their purposes. Initially launched as an exclusive model in November 2023, Grok was solely available through Musk’s social platform X until mid-March.
Earlier this month, Ferragu also commented on xAI’s plans to invest in Nvidia Corporation’s AI chips, the Blackwell B200s. At the time, Musk said that his AI startup would have its 100,000 H100 liquid-cooled training cluster online within a few months. The company’s next major step would be to invest in 300,000 B200s equipped with CX8 networking by the following summer.
Ferragu commented, "This is huge. This may be in « Elon time » but it still means the processing power between the two generations goes up at least 15x and the cost easily 5x. That’s Nvidia’s market…"
He previously also commented on ChatGPT-parent OpenAI’s decision to offer its foundational model for free. Ferragu expressed concerns that this move could hinder OpenAI’s growth.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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