Elon Musk's AI venture, xAI, has officially launched its highly anticipated Grok 3 chatbot, billing it as the “smartest AI on Earth” in a fiercely competitive market. The live demonstration of the chatbot took place on Monday evening at 8:00 pm Pacific Time (0400 GMT), announced Musk on his social media platform, X (formerly Twitter).

Grok 3 is designed to excel in logical reasoning and error correction. Musk highlighted that the chatbot, trained on synthetic data, has the unique ability to “reflect on errors it makes” by reviewing its data and ensuring logical consistency. This feature is expected to give Grok 3 a significant edge over other AI systems, which often struggle with producing consistent and coherent outputs.

In the days leading up to the launch, Musk shared that he and his team had been fine-tuning the product over the weekend, creating a sense of anticipation for the debut. While Musk has frequently warned about the potential risks of AI to humanity, he is also pushing for greater investment and innovation in the field, acknowledging its vast commercial potential.

The release of Grok 3 comes as the AI industry faces fierce competition, with products like OpenAI’s ChatGPT already leading the way. As artificial intelligence continues to spread throughout modern life, Grok 3 aims to offer a competitive advantage through its focus on logical precision and advanced error-correction capabilities.

xAI’s entrance into the market also comes as other players are making notable strides. Last month, Chinese startup DeepSeek shocked the AI industry with the launch of its chatbot, which quickly surpassed ChatGPT in downloads on the Apple App Store. DeepSeek's rapid rise highlights the growing challenge to US-based AI companies, marking the global nature of the AI race.

To fuel its AI ambitions, xAI secured substantial funding, raising $6 billion in its latest round in December. This followed an initial $6 billion round raised earlier in May, with investments from prominent sources including US venture capitalists, chipmakers Nvidia and AMD, and investment funds from Saudi Arabia and Qatar. Though xAI is now one of the world’s most valuable startups, it still lags behind OpenAI in terms of valuation.

Founded in July 2023, xAI was created by Musk shortly after he signed an open letter calling for a pause in the development of powerful AI models. Despite his warnings about AI’s potential dangers, Musk has continued to push forward with his AI ventures, positioning xAI as a central part of his strategy to capture a significant share of the AI market.

As Grok 3 is now officially live, Musk’s xAI is poised to make a significant impact on the AI landscape. With the competition heating up, both from established companies like OpenAI and emerging players like DeepSeek, Grok 3 could become a key player in shaping the future of AI. While the full capabilities of Grok 3 are still unfolding, the launch marks a bold move by Musk to claim a stake in the rapidly growing AI-driven tech space.