What is xAI’s Grok model and how much does its API cost?
Cover Photo Major News from xAI, IBM's Enterprise AI, Microsoft, Salesforce, DataCrunch, Perplexity and Gartner

Musk’s xAI Launches API for Grok Model

Elon Musk’s xAI has introduced an API for its Grok model, priced at $5 per million input tokens and $15 per million output tokens. The API currently offers a single “grok-beta” model with function calling capabilities. Grok, known for its “rebellious streak,” has been integrated into various X features, including image generation and news summarization. xAI aims to compete with established AI companies like OpenAI and Anthropic, leveraging data from X and potentially Musk’s other ventures. The company recently raised $6 billion in funding but faces challenges, including lawsuits from Tesla shareholders and environmental concerns about its datacenter.

IBM Expands Enterprise AI with New Granite 3.0 Models

IBM has unveiled its third generation of Granite large language models, designed for enterprise AI applications. The new lineup includes general-purpose, Mixture-of-Experts, and safety-focused Guardian models, available through IBM’s watsonX service and other platforms. Trained on 12 trillion tokens of diverse data, Granite 3.0 aims to support various enterprise use cases, from customer service to cybersecurity. IBM emphasizes the models’ performance, safety features, and cost-effective inference. Notably, Granite 3.0 is released under the Apache 2.0 open-source license, offering flexibility to enterprise partners. IBM sees this as a step towards “generative computing,” where computers are programmed through examples rather than explicit instructions.

Microsoft Unveils AI Agents for Enterprise, Challenging Salesforce

Microsoft has introduced a suite of ten autonomous AI agents for its Dynamics 365 platform, designed to enhance sales, service, finance, and supply chain operations. These agents, set for public preview next month, aim to automate complex tasks and streamline business processes. Unlike traditional chatbots, they can reason over intent and context, making informed decisions based on comprehensive data. This move intensifies competition with Salesforce, which recently launched its Agentforce platform. Microsoft emphasizes that these AI agents are meant to augment human capabilities rather than replace workers. The development signals a significant shift in enterprise software, with AI agents poised to become central to business operations.

DataCrunch: Europe’s Renewable-Powered AI Compute Provider

Finnish startup DataCrunch is positioning itself as a leading European AI compute provider, offering GPU-as-a-service powered by renewable energy. The company has secured $13 million in seed funding to expand its infrastructure and support the latest Nvidia servers. DataCrunch’s data centers in Helsinki and Iceland leverage green energy sources, with plans to capture waste heat for urban heating. The company aims to serve both corporate clients and individual AI researchers, offering flexible pricing options. While focusing on environmentally friendly operations, DataCrunch acknowledges a trade-off in latency compared to more distributed providers. The startup plans to build its own data centers by 2025, targeting future public listing.

News Corp Sues AI Startup Perplexity Over Alleged Copyright Infringement

News Corp’s Dow Jones and NY Post have filed a lawsuit against AI startup Perplexity, accusing the company of large-scale copyright violations. The media organization claims Perplexity’s AI “answer engine” copies copyrighted news content to generate responses that compete with original publishers. News Corp argues this practice deprives them of critical revenue sources. Perplexity maintains its web scrapers collect data as an index for models to reference, not for AI training. The lawsuit seeks significant damages and joins a growing number of legal challenges in the AI industry regarding copyright infringement. News Corp’s CEO emphasized the company’s commitment to protecting intellectual property and challenging what he termed the “content kleptocracy.”

AI Agents and Emerging Technologies Reshape Future of Work and Security

Gartner’s latest predictions highlight the growing influence of AI agents in the workplace, with autonomous decision-making expected to increase significantly by 2028. The firm also anticipates the rise of AI governance platforms to ensure responsible AI use and transparency. Other key trends include the adoption of hybrid computing models, combining various paradigms for optimal performance and energy efficiency. Disinformation security emerges as a critical concern, with enterprises expected to invest in protective measures against AI-generated threats. Preparing for post-quantum cryptography becomes urgent as quantum computing advances threaten current encryption methods. Lastly, bidirectional brain-machine interfaces are predicted to enhance human cognitive abilities in the AI-powered workplace.

Frequently asked questions

xAI’s Grok is an AI model known for its “rebellious streak” that offers function calling capabilities through its API. The API is priced at $5 per million input tokens and $15 per million output tokens. Grok has been integrated into various X (formerly Twitter) features, including image generation and news summarization, and aims to compete with major AI companies like OpenAI and Anthropic.
IBM’s Granite 3.0 represents the third generation of their enterprise-focused large language models, trained on 12 trillion tokens of diverse data. It includes general-purpose, Mixture-of-Experts, and safety-focused Guardian models, all available through IBM’s watsonX service. The model is released under the Apache 2.0 open-source license and emphasizes performance, safety features, and cost-effective inference for various enterprise applications.
Perplexity is an AI startup that operates an “answer engine” using AI technology. News Corp’s Dow Jones and NY Post are suing Perplexity for alleged copyright violations, claiming the company copies copyrighted news content to generate responses that compete with original publishers. While Perplexity maintains its web scrapers only collect data as an index for models to reference, News Corp argues this practice deprives them of critical revenue.
DataCrunch is a Finnish startup offering GPU-as-a-service powered entirely by renewable energy. With $13 million in seed funding, they operate data centers in Helsinki and Iceland that use green energy sources and plan to capture waste heat for urban heating. The company provides flexible pricing options for both corporate clients and individual AI researchers, with plans to build their own data centers by 2025.
Microsoft has developed ten autonomous AI agents for its Dynamics 365 platform that enhance sales, service, finance, and supply chain operations. These agents can reason over intent and context to make informed decisions based on comprehensive data, going beyond traditional chatbot capabilities. They’re designed to augment human capabilities rather than replace workers and will be available for public preview next month.
Gartner predicts significant growth in autonomous AI agent decision-making by 2028, alongside the rise of AI governance platforms. They anticipate increased adoption of hybrid computing models and emphasis on disinformation security measures. The firm also highlights the importance of preparing for post-quantum cryptography and the potential impact of bidirectional brain-machine interfaces in enhancing human cognitive abilities.
xAI is competing with established AI companies by leveraging data from X (formerly Twitter) and potentially other Musk ventures. The company recently secured $6 billion in funding and launched its Grok API to challenge competitors like OpenAI and Anthropic. However, xAI faces challenges including lawsuits from Tesla shareholders and environmental concerns about its datacenter operations.
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Gor Gasparyan

Optimizing digital experiences for growth-stage & enterprise brands through research-driven design, automation, and AI