The global competition for AI (Artificial Intelligence) supremacy is intensifying. Countries, particularly the United States and China, are strengthening policy support to foster the AI industry, while major corporations are investing heavily in AI technology development and semiconductor supply chains. Amidst this, Elon Musk has officially entered the AI race, causing significant shifts in the market landscape.
Global Competition for AI Supremacy
Leading AI companies today include OpenAI, Google, Meta, Microsoft, and NVIDIA. These companies are focusing on the development of large language models (LLMs) and expanding cloud infrastructure to maintain market dominance. OpenAI pioneered the AI chatbot market with ChatGPT and has been expanding its influence through active investment and collaboration with Microsoft. Google is enhancing its search services using its proprietary AI models, while Meta is optimizing social media platforms with AI integration.
The semiconductor market for AI computations is also experiencing fierce competition. NVIDIA has solidified its position as the key supplier of essential hardware for AI training and processing by dominating the GPU (Graphics Processing Unit) market. In response, AMD and Intel are accelerating the development of high-performance AI semiconductors, while Samsung Electronics and SK Hynix are increasing their competitiveness in the AI semiconductor market through HBM (High Bandwidth Memory) advancements.
Elon Musk’s Entry into AI and xAI’s Strategy
As of February 18, 2025, Musk’s AI company, xAI, has unveiled its latest AI chatbot model, ‘Grok3.’ On February 15, Musk officially announced the launch of Grok3 via X (formerly Twitter), introducing it as “the most advanced AI on Earth.” At 8 PM PST on February 17 (1 PM KST on February 18), xAI officially demonstrated Grok3’s capabilities and commenced its service deployment.
Musk has been working closely with his research team to develop ‘Grok3’ and emphasized that this version features significantly improved conversational capabilities compared to its predecessors. Notably, xAI has introduced an ‘Unhinged Mode’ in this version, allowing the AI to respond to controversial or sensitive topics that previous models typically avoided. This move highlights xAI’s intent to expand AI’s expressive capabilities and accommodate a wider range of perspectives.
One of the most critical improvements in Grok3 is its enhanced contextual comprehension. Compared to previous models, it exhibits a deeper understanding of specific fields and generates more natural sentences. This improvement aligns with the enhanced performance of xAI’s newly integrated advanced neural network architecture. Furthermore, with the addition of real-time learning capabilities, Grok3 can incorporate user interactions into its dataset dynamically, improving AI responsiveness and interactivity.
Global AI Competition and Recent Developments
The global race for AI supremacy is growing more intense. China’s AI startup, DeepSeek, recently developed a model comparable to OpenAI’s ChatGPT and highlighted its ability to operate at a lower cost than existing AI services. In response, Musk commented at a conference in Germany that this was “not a true AI revolution” and asserted that xAI and other competitors would introduce even more advanced AI models.
Meanwhile, the AI semiconductor sector is witnessing significant shifts. As the US-China technological rivalry escalates, securing GPUs for AI research and development has become increasingly critical. To this end, xAI is leveraging ‘Colossus,’ a massive supercomputer located in Memphis, Tennessee, to train its AI models. Reportedly equipped with 100,000 units of NVIDIA’s latest H100 GPUs, Colossus began full-scale operations in December 2024.
The launch of Grok3 is expected to drive further advancements in AI technology and intensify market competition. With its unique features distinguishing it from existing AI models, xAI’s market expansion strategy is drawing considerable attention. Musk has emphasized the importance of AI openness and ethical use, claiming that AI development should prioritize humanity’s overall benefit over mere commercial interests.
As competition for AI supremacy continues, governments worldwide are formulating response strategies. The US and EU are strengthening AI regulations and ethical guidelines while expanding policy support to accelerate AI development. In contrast, China is accelerating national-level AI infrastructure development to boost its AI industry.
The future AI market is expected to become even more complex and rapidly evolving. Since AI technology will play a crucial role in industries, economies, and security, global competition for AI supremacy will likely intensify. As these changes unfold, discussions on AI utilization and regulation will persist, and the AI industry’s trajectory will become increasingly dynamic. With corporations and governments playing pivotal roles, the direction of AI policies and technological development remains a critical focus.
