Elon Musk is shaking up the AI world again. His startup, xAI, just launched Grok-2, a new chatbot aiming to rival big names like OpenAI's ChatGPT and Google's Gemini. In just 18 months, xAI has managed to leap into the top five AI developers, according to independent benchmarks. That's a big deal for a company still so young.
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Grok-2 isn't just for show. It's ranked among the top five large language models worldwide, putting it ahead of its more established competitors. If you subscribe to Musk's social platform X, you'll get access to Grok-2. But xAI isn't stopping there. They plan to roll out the model to developers soon, allowing them to build enterprise applications using Grok-2's capabilities.
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Ethan Mollick, a professor at Wharton and an AI expert, summed it up on X: "There are now five GPT-4 class models: GPT-4o, Claude 3.5, Gemini 1.5, Llama 3.1, and now Grok-2." He pointed out that while there's still room for improvement in the AI space, no model has truly surpassed GPT-4 just yet.
Musk is in a race. He's trying to catch up with OpenAI, the company he cofounded, but left in 2018 after a disagreement over its direction. Recently, Musk launched a lawsuit against OpenAI and its CEO, Sam Altman, claiming he was misled into investing in what he now calls a "fake humanitarian mission." OpenAI, backed by Microsoft, has dismissed Musk's claims as "incoherent and frivolous."
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Despite the drama, xAI is moving fast. The company recently closed a $6 billion funding round, valuing it at $18 billion. Musk is even seeking approval from Tesla's board to invest another $5 billion into xAI, putting the startup's investment almost on par with OpenAI's $13 billion and ahead of Anthropic's $9 billion.
But it's not all smooth sailing. xAI's use of data from Musk's X platform has stirred controversy. Earlier this month, they partially paused data processing in Europe after Ireland's data protection watchdog raised concerns. The issue? xAI was using X posts to train its AI without getting explicit consent from users, potentially violating EU privacy rules.
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Even with these bumps in the road, xAI is pushing forward. The company claims Grok-2 is a "significant step forward," boasting it's more intuitive and versatile than its predecessor. Unlike earlier models, Grok-2 is designed to provide accurate, factual information, avoiding the "hallucinations" that plagued previous versions. These hallucinations, where AI generates false information, have been a major hurdle for widespread adoption in business.
According to LMSYS, a leading AI benchmark site, Grok-2's performance has already outpaced some of Meta's and Anthropic's best models. But just as Grok-2 made its mark, OpenAI updated its GPT-4o, reclaiming the top spot on the leaderboard.
The AI race is far from over, but with Grok-2, Musk's xAI has made it clear they're in it to win.
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