In August, Elon Musk's xAI announced plans to launch an API for its flagship generative AI model, Grok. This API has now been released, although its features are currently limited.
The xAI API offers only one model, named "grok-beta," which is priced at $5 per million input tokens (approximately 750,000 words) and $15 per million output tokens. Tokens are essentially segments of raw data; for instance, the word "fantastic" can be broken down into smaller parts like "fan," "tas," and "tic." The specific capabilities of "grok-beta" remain somewhat unclear, especially since Grok 2 is the latest model available on the X platform. The API documentation mentions both Grok 2 and a lighter version called Grok mini, suggesting potential technical adjustments may be needed.
Some users have reported difficulties when attempting to purchase usage credits. The API does support function calling, which allows Grok to connect with external tools such as databases and search engines. Future updates may include vision models capable of analyzing text and images, although these features are not yet operational.
Founded last year, xAI recently moved into the former offices of OpenAI and launched Grok for X Premium+ users at a subscription cost of $16 per month. Musk has described Grok as having a “rebellious nature,” allowing it to respond to queries that other AI systems typically avoid. For example, when prompted for vulgarity, Grok does not hesitate to comply, contrasting sharply with more restrained models like ChatGPT.
Grok is becoming increasingly integrated into the X platform, capable of generating images and summarizing news and trending events—albeit sometimes inaccurately. There are plans for Grok to enhance various features on X in the future, including search capabilities and post analytics.
xAI is striving to compete with established players like OpenAI and Anthropic. In May, the company raised $6 billion in funding from prominent investors such as Andreessen Horowitz and Sequoia Capital. Musk believes that data from the X platform gives xAI a significant advantage over competitors; recently, X modified its privacy policy to permit third parties like xAI to utilize data from posts for training models.
As part of its funding pitch, xAI proposed training its models using data from Musk's other companies—Tesla, SpaceX, and The Boring Company—to enhance their technologies. However, this plan has faced skepticism from Tesla shareholders, who argue that it diverts resources away from Tesla.
Currently, xAI is training the next generation of Grok models at its Memphis data center, which has faced criticism for contributing to local smog issues due to unauthorized turbines. The company intends to upgrade this facility next year but will require approval from the Tennessee Valley Authority to proceed.