Elon Musk said his startup xAI will release its Grok 3 chatbot on Monday, describing it as the smartest AI on Earth in the increasingly competitive generative model market.

The latest AI product will go live with a demonstration on Monday night at 8:00 p.m. Pacific time. Musk added on X that he "will be honing the product with the team all weekend, so offline until then."

Musk, the richest person in the world and in charge of Tesla and SpaceX, teased the launch of Grok 3 during a video conference at the World Government Summit in Dubai last week. Musk emphasized Grok 3's superior performance compared to all AI bots released so far globally. Importantly, Grok 3 has been trained on synthetic data, which means that the model is capable of reflecting upon its output to find mistakes and correct them by revisiting the data. This process ensures logical consistency, Musk added.

Grok 3 matters more to Tesla, as Musk said in January during a live stream that Grok will soon be integrated into Tesla vehicles, allowing owners to interact with their cars using natural voice commands. However, Tesla shares have been tumbling in recent weeks as Musk has been alleged to have interfered too much with Trump's administration and global politics, which has backfired on vehicle sales in Europe.

The release timing is noteworthy, coming just after Musk offered a $97.4 billion bid for OpenAI, though OpenAI is valued at up to $340 billion. CEO Sam Altman described the world's richest man as aiming to "slow down a competitor," with all board members rejecting the offer.

This also happens after Chinese startup DeepSeek shocked the global AI industry last month with the launch of its ChatGPT-comparable reasoning model R1 at a fraction of the cost, shaking the entire U.S. tech industry. As the response, OpenAI fought back with its latest O3 model.

Back in July, Musk said the latest Grok 3 should be "really something special" after acquiring 100,000 H100s. Each Nvidia H100 GPU chip is estimated to cost around $30,000, valuing the total at $3 billion.

xAI is reportedly seeking to raise around US$10 billion in the latest funding round that could value the company at US$75 billion, according to a source familiar with the matter.