Elon Musk’s xAI on Tuesday unveiled its latest artificial intelligence model, Grok 3, claiming it can outperform offerings from OpenAI and China’s DeepSeek based on early testing, which included standardized tests on math, science and coding.
“We’re very excited to present Grok 3, which is, we think, an order of magnitude more capable than Grok 2 in a very short period of time,” Musk said at a demonstration of Grok 3 that was streamed on his social media platform X.
The team also said it was launching a new product called “Deep Search,” which would act as a “next generation search engine.”
Grok 3 will be rolled out for premium X subscribers later in the day, and will also be accessible through a separate subscription for the model’s web and app versions, the xAI team said.
Speaking at The World Governments Summit in Dubai last week Musk had dubbed the model “scary smart,” with powerful reasoning capabilities, claiming it outperformed all other existing models in xAI’s internal tests.
“This might be the last time that an AI is better than Grok,” Musk said at the time, adding that it was trained on “a lot of synthetic data,” and was capable of reflecting upon its mistakes to achieve logical consistency.
The xAI team claimed that an early iteration of Grok 3 had been given better ratings than existing competitors on Chatbot Arena, a crowdsourced website that pits different AI models against each other in blind tests.
Toward the end of the product demo, Musk said that the company will keep improving the model.
“We should emphasize that this is kind of a beta, meaning that you should expect some imperfections at first, but we will improve it rapidly, almost every day,” he said, adding that the voice assistance for the model would be released at a later time.
Intense competition
Musk, who has been quite vocal about the potential dangers of artificial intelligence, started xAI in 2023 entering the generative AI market that includes OpenAI’s ChatGPT.
In September last year, OpenAI launched its most advanced model, the o1, which came with reasoning abilities and was able to solve relatively complex science, coding and math tasks.
Musk, along with Sam Altman, helped create OpenAI as a nonprofit in 2015.
However, in recent years Musk and OpenAI’s leadership have been feuding. Musk recently led an investor group that submitted a proposal to buy the AI startup’s nonprofit parent for $97.4 billion — an offer OpenAI declined.
Last month, Chinese start-up DeepSeek shocked the AI market when it released a technical paper that claimed one of its open source models was able to rival the performance of OpenAI’s o1 model despite using a cheaper, less energy-intensive process.
It accomplished the feat in the face of the U.S. restricting leading AI chipmaker Nvidia from selling its cutting-edge GPUs — used for training AI models — to China.
XAI has a “Colossus supercomputer,” for training AI, which it said last year was utilizing a cluster of 100,000 advanced Nvidia GPUs for AI training. On Tuesday, the company revealed that it doubled the size of its GPU cluster for the training of Grok 3.
While many AI and tech experts have told CNBC that DeepSeek has intensified AI competition, showing what can be done with less advanced technology, others are more skeptical about its impact.
Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.
“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.
Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.
Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially.
“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”
Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.
“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly.
He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry.
“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.”
Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business.
An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025.
Isabel Infantes | Reuters
Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.
Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.
Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.
Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.
“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”
The Nintendo Switch 2 and “Mario Kart World“ bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.
However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”
It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.
An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.
“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.
Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”
“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.
Etsy shares are down 17% this year, slightly more than the Nasdaq.