xAI on track to top $100M in annual revenue, release standalone Grok app: report
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Elon Musk’s generative artificial intelligence startup xAI is on track to surpass $100M in annual revenue and could release a standalone app for its Grok chatbot as soon as next month, The Wall Street Journal reported.
The vast majority of the company’s revenue comes from Musk’s other companies, as Grok is only available to users of the X social network, and it has been used for customer service feature for SpaceX’s (SPACE) Starlink internet service, the news outlet added, citing people with knowledge of the matter. It could also be used for a search engine from X, one of the people added.
San Francisco-based xAI did not immediately respond to a request for comment from Seeking Alpha.
The stand alone Grok chatbot could compete with others like it, such as OpenAI’s ChatGPT or Google’s (GOOG) (GOOGL), Gemini, which launched on iOS earlier this month. Musk co-founded OpenAI in December 2015, but has since left the company and is suing it and others, including Microsoft (MSFT).
In October, xAI released its first application programming interface, or API. Currently, the xAI API only has one model, known as “grok-beta.” This model is priced at $5M per million input tokens or $15M per million output tokens. It is unclear if the models are Grok-2 or Grok-2 mini, which were announced in August.
Earlier this month, xAI raised $6B in new funding that valued the company at $50B. Some of the new funding is going towards xAI’s massive data center in Memphis, where it will use 100,000 of Nvidia’s (NVDA) H100 GPUs, Musk said in a post on X. The process to build it took 122 days.