In August, Elon Musk’s artificial intelligence company, xAI, revealed plans to offer Grok, its generative AI model, through an API. Now, that API has officially launched, though it’s starting off with limited features.
Currently, the xAI API offers only one model, “grok-beta,” which is priced at $5 per million input tokens (roughly equivalent to 750,000 words) and $15 per million output tokens. In AI terms, tokens are small units of data, such as the segments “fan,” “tas,” and “tic” within the word “fantastic.”
It’s still unclear which version of the Grok model “grok-beta” represents, as Grok 2 is the most recent model available on the X platform. The documentation mentions both Grok 2 and a lighter, more cost-effective model called Grok Mini, indicating there may be technical issues or delays.
Some users have also reported difficulties when trying to purchase credits for the API’s usage, which has raised early concerns.
The xAI API includes support for function calling, allowing Grok models to connect with external tools such as databases or search engines. The documentation also hints at the future addition of vision models that can analyze both text and images, though these features are not yet available.
Elon Musk founded xAI last year, and the company has recently moved into OpenAI’s former offices. The first Grok model was made available on X (formerly Twitter) to Premium+ users, who pay $16 per month. Musk has described Grok as having a “rebellious streak,” being more willing to answer provocative or unconventional questions than other AI systems. For instance, if asked to use vulgar language, Grok is designed to comply, unlike more cautious models like ChatGPT.
Grok has already become an integral part of the X platform, offering features like image generation through a partnership with the open-source image tool Flux. It also provides news and event summaries, although there have been notable errors. In the future, Grok may contribute to X’s search functions, account bios, post analytics, and replies.
xAI is working hard to catch up with AI giants like OpenAI and Anthropic. In May, the startup secured $6 billion in funding from major investors such as Andreessen Horowitz, Sequoia Capital, and Fidelity.
Musk claims that X’s vast data gives xAI a unique advantage over its competitors. Earlier this month, X updated its privacy policy to allow third-party entities, including xAI, to use posts from the platform to train AI models.
As part of its long-term vision, xAI plans to train its models using data from Musk’s other companies, including Tesla, SpaceX, and The Boring Company. However, some Tesla shareholders have opposed this idea, suing Musk for allegedly diverting resources and talent away from Tesla to develop xAI, which they argue competes with the electric carmaker.
xAI is currently training its next-generation Grok models at a data center in Memphis, which has faced criticism for operating unauthorized turbines that contribute to local air pollution. The company aims to upgrade the facility next year, pending approval from the Tennessee Valley Authority.
