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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. 

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Tesla robotaxi incidents caught on camera in Austin draw regulators’ attention

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Tesla robotaxi incidents caught on camera in Austin draw regulators' attention

A Tesla robotaxi drives on the street along South Congress Avenue in Austin, Texas, on June 22, 2025

Joel Angel Juarez | Reuters

Tesla was contacted by the National Highway Traffic Safety Administration on Monday after videos posted on social media showed the company’s robotaxis driving in a chaotic manner on public roads in Austin, Texas.

Elon Musk’s electric vehicle maker debuted autonomous trips in Austin on Sunday, opening the service to a limited number of riders by invitation only.

In the videos shared widely online, one Tesla robotaxi was spotted traveling the wrong way down a road, and another was shown braking hard in the middle of traffic, responding to “stationary police vehicles outside its driving path,” among several other examples.

A spokesperson for NHTSA said in an e-mail that the agency “is aware of the referenced incidents and is in contact with the manufacturer to gather additional information.”

Tesla Vice President of Vehicle Engineering Lars Moravy, and regulatory counsel Casey Blaine didn’t immediately respond to a request for comment.

The federal safety regulator says it doesn’t “pre-approve new technologies or vehicle systems.” Instead, automakers certify that each vehicle model they make meets federal motor vehicle safety standards. The agency says it will investigate “incidents involving potential safety defects,” and take “necessary actions to protect road safety,” after assessing a wide array of reports and information.

NHTSA previously initiated an investigation into possible safety defects with Tesla’s FSD-Supervised technology, or FSD Beta systems, following injurious and fatal accidents. That probe is ongoing.

The Tesla robotaxis in Austin are Model Y SUVs equipped with the company’s latest FSD Unsupervised software and hardware. The pilot robotaxi service, involving fewer than two-dozen vehicles, operates during daylight hours and only in good weather, with a human safety supervisor in the front passenger seat.

The service is now limited to invited users, who agree to the terms of Tesla’s “early access program.” Those who have received invites are mostly promoters of Tesla’s products, stock and CEO.

While the rollout sent Tesla shares up 8% on Monday, the launch fell shy of fulfilling Musk’s many driverless promises over the past decade.

In 2015, Musk told shareholders Tesla cars would achieve “full autonomy” within three years. In 2016, he said a Tesla EV would be able to make a cross-country drive without needing any human intervention before the end of 2017. And in 2019, on a call with institutional investors that helped him raise more than $2 billion, Musk said Tesla would have 1 million robotaxi-ready vehicles on the road in 2020, able to complete 100 hours of driving work per week each, making money for their owners.

None of that has happened.

Meanwhile, Alphabet-owned Waymo says it has surpassed 10 million paid trips last month. Competitors in China, including Baidu’s Apollo Go, WeRide and Pony.ai, are also operating commercial robotaxi fleets.

WATCH: Tesla launches robotaxis in Austin as robotaxi race heats up

Tesla launches robotaxis in Austin as robotaxi race heats up

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Meta approached AI startup Runway about a takeover bid before Scale deal

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Meta approached AI startup Runway about a takeover bid before Scale deal

Mustafa Hatipoglu | Anadolu | Getty Images

Meta spoke with artificial intelligence startup Runway about a potential takeover ahead of its multibillion-dollar investment in Scale AI, CNBC confirmed Monday.

Runway is best known for its AI video-generation tools and earned a spot on CNBC’s Disruptor 50 list earlier this month.

The deal talks between Meta and Runway did not progress far and dissolved, according to a person familiar with the matter who asked not to be named due to the confidential nature of the discussions.

Bloomberg earlier reported the talks. Meta declined to comment.

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Meta CEO Mark Zuckerberg has been aggressively pushing to bolster his company’s AI efforts in recent months. The social media giant invested $14.3 billion into Scale AI in June, and it has also approached the startups Safe Superintelligence and Perplexity AI about potential acquisitions this year.

Meta agreed to a 49% stake in Scale AI and hired away founder Alexandr Wang along with a few other employees from the company.

While Meta was unsuccessful in its efforts to buy Superintelligence outright, Daniel Gross, the company’s CEO, and former GitHub CEO Nat Friedman are joining Meta’s AI efforts, where they will work on products under Wang.

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Meta approached Perplexity before massive Scale AI deal

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U.S. House tells staffers not to use Meta’s WhatsApp

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U.S. House tells staffers not to use Meta’s WhatsApp

A woman walks past a logo of WhatsApp during a Meta event in Mumbai, India, on Sept. 20, 2023.

Niharika Kulkarni | Nurphoto | Getty Images

Meta is pushing back against a ban on WhatsApp from government devices.

The chief administrative officer, or CAO, of the U.S. House of Representatives told staffers on Monday that they are not allowed to use Meta’s popular messaging app. The CAO cited a lack of transparency about WhatsApp’s data privacy and security practices as the reason for the ban, according to a report by Axios that cited an internal email from the government office.

The CAO told House staff members in the email that they are not allowed to download WhatsApp on their government devices or access the app on their smartphones or desktop computers, the report said. Staff members must remove WhatsApp from their devices if they have the app installed on their devices, the report said.

“Protecting the People’s House is our topmost priority, and we are always monitoring and analyzing for potential cybersecurity risks that could endanger the data of House Members and staff,” U.S. House Chief Administrative Officer Catherine Szpindor told CNBC in a written statement.

Meta spokesperson Andy Stone on Monday responded to the report via a post on X, saying the company disagrees “with the House Chief Administrative Officer’s characterization in the strongest possible terms.”

“We know members and their staffs regularly use WhatsApp and we look forward to ensuring members of the House can join their Senate counterparts in doing so officially,” Stone said.

In a separate X post, Stone said WhatsApp’s encrypted nature provides a “higher level of security than most of the apps on the CAO’s approved list that do not offer that protection.”

Some of the messaging apps the CAO said are acceptable alternatives to WhatsApp include Microsoft Teams, Signal and Apple’s iMessage, the Axios report said.

Meta is currently embroiled in an antitrust case with the Federal Trade Commission over the social media company’s acquisitions of WhatsApp and Instagram.

Last week, Meta debuted ads in WhatsApp in an effort to monetize the app that CEO Mark Zuckerberg has deemed “the next chapter” for his company’s history.

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Watch CNBC's full interview with Meta CTO Andrew Bosworth

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