Tesla CEO Elon Musk expects xAI's Grok 5 to surpass OpenAI's GPT-5 by year-end.

Tesla CEO Elon Musk predicts xAI's Grok 5 will be released before the end of 2025 and will be "crushingly good." Musk made the comment in response to Microsoft-backed OpenAI's GPT-5 models, which were announced earlier Thursday. He also stated that OpenAI will "eat Microsoft alive."

Tesla CEO Elon Musk has announced that xAI's Grok 5 will be released before the end of 2025, positioning it as a significant competitor to Microsoft-backed OpenAI's GPT-5 models. Musk made the prediction in response to OpenAI's recent announcement of GPT-5, stating that the new model from xAI will be "crushingly good" [1].

OpenAI unveiled GPT-5 on Thursday, August 7, 2025, across several of its platforms, including Microsoft 365 Copilot, GitHub Copilot, and Azure AI Foundry. The company dubbed it the "most capable model yet," highlighting improvements in reasoning, coding, and chat capabilities [1]. However, Musk has expressed skepticism, claiming that xAI's Grok 4 is superior to GPT-5 [1].

Musk's prediction comes as xAI and OpenAI engage in a heated rivalry. OpenAI's CEO, Satya Nadella, responded to Musk's claims, stating that people have been trying to "eat Microsoft alive" for 50 years. Musk, however, remains confident in xAI's capabilities, stating that Grok 4 was "smarter" than GPT-5 two weeks ago and that Grok 5 will be a significant advancement [1].

The AI landscape is rapidly evolving, with both companies investing heavily in AI development. OpenAI has been releasing new AI models and agents at a rapid pace, while xAI has been focusing on generative media and smart search engines. The competition between these companies is driving innovation and pushing the boundaries of what AI can achieve [2].

In the face of this competition, Musk has been actively promoting xAI's latest models and capabilities. He has also been critical of OpenAI's plans to restructure as a for-profit business, leading to legal disputes between the two companies [3].

As the AI battle heats up, investors and financial professionals should keep a close eye on the developments from both xAI and OpenAI. The release of Grok 5 could significantly impact the AI market, and the rivalry between these two companies is likely to continue to drive innovation and growth.

References:
[1] https://www.hindustantimes.com/trending/us/elon-musks-string-of-warnings-for-openai-satya-nadella-after-gpt-5-release-grok-will-101754596632162.html
[2] https://economictimes.indiatimes.com/tech/artificial-intelligence/elon-musk-says-xai-will-open-source-grok-2-chatbot/articleshow/123137067.cms
[3] https://stocktwits.com/news-articles/markets/equity/sam-altman-teases-open-ai-gpt-5-release-with-cryptic-death-star-post-as-ai-battle-heats-up-with-musk-s-grok-other-rivals/chrlHLqRddE
[4] https://www.detroitnews.com/story/business/2025/02/18/musk-debuts-grok-3-ai-chatbot-to-rival-openai-deepseek/79067604007/