Elon Musk unveils xAI's new chatbot 'Grok'

Elon Musk unveiled xAI's brand new chatbot "Grok" on Saturday. The chatbot is supposed to be what many are calling a snarkier AI with a sense of humor compared to its competitor ChatGPT, with the added ability to answer questions that are often ignored or denied by other chatbots. The large language model is still very early in beta testing with only select users having access to the service.

Yahoo Finance Tech Editor Dan Howley breaks down the latest news following this reveal.

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SEANA SMITH: Elon Musk's xAI has debuted its first technology in the form of a new AI chat, bot Grok. Now, the technology will rival OpenAI's ChatGPT. And it's intended to answer, quote, "almost anything," along with having access to real-time data from X. This is all according to Elon Musk.

"Yahoo Finance's" tech editor Dan Howley has the details for us. Dan?

DAN HOWLEY: That's right, Seana. Elon Musk unveiled this xAI addition to the AI arms race, Grok, this past week. And he gave some hint as to what it has to offer. And apparently, it's supposed to be a snarkier version of an AI chat bot than we've seen before. He says that it's modeled after the "Hitchhiker's Guide to the Galaxy," the book from the-- the guidebook from the book of the same name, "Hitchhiker's Guide to the Galaxy."

It's also supposed to be a little more irreverent. Use real-time data from X. So it'll be up to date. It's not going to be trained-- it's trained on older data as well. But it's not going to rely solely on older data. It'll be able to pull in something that recently happened.

And it really seems to be as, though, they're trying to make this as efficient as possible. Cutting down on the amount of power that it requires and the amount of training that it needs. According to the site, X AI, they've managed to surpass the capabilities with their, Grok 1. This is the second generation or second iteration of Grok. The first was Grok zero. It surpasses the capabilities of GPT-3.5 as well as Inflection-1, which are two other chat bots or AI models.

So, obviously, they're making some progress here. It's not up to snuff when it comes to GPT-4 or Claude 2-- excuse me, Claude two. But it is seemingly doing very well, so far. These are some of the folks that were from Google DeepMind. Obviously, Tesla and SpaceX among others. And so it's really kind of got a murderer's row of developers. And, obviously, thought leaders in the AI space.

I think now, what's going to happen is there's plans to charge for this. Make it part of the X premium subscription service. But where do we go from here with something like this? Does it wrap itself into X? Does it become a new type of product? Is it something that X will actually make money off of? Obviously, running these kinds of models is very expensive and can be a drain for a while. So we'll just have to see where Elon Musk decides to go from here.