xAI Releases Grok 3: Showing Initial Market Impact Amid Challenges

2025-02-25

Elon Musk's AI company, xAI, has officially launched its highly anticipated flagship AI model, Grok 3. This advanced model powers the mobile and web-based chatbot applications of Grok, as well as enhances the Grok experience within Musk's social network platform X.

In a crowded market for AI chatbots, it was uncertain whether Grok 3 would make a significant impact. With OpenAI's ChatGPT boasting over 400 million weekly active users, the challenge was formidable. However, preliminary data indicates that the new model has indeed attracted a substantial number of downloads and trials from users.

According to market intelligence firm Sensor Tower, the global and U.S. mobile download volumes of the Grok app increased by more than 10 times in the week following the launch of Grok 3. Additionally, the daily active user base in the U.S. surged by over 260%, while globally, it grew by five times.

It is worth noting that the release of Grok 3 coincided with the expansion of the Grok app into multiple markets across Europe, Latin America, and Southeast Asia, which may have contributed to some of the global growth.

Meanwhile, the web application of Grok also saw significant growth independently. Digital intelligence platform Similarweb reported that the daily visits to Grok.com in the U.S. increased from approximately 189,000 to over 900,000 within days of the launch. Globally, daily visits grew from 627,000 to over 4.5 million.

While these figures are impressive, the key question remains whether xAI can sustain this momentum and retain its user base.