Elon, stop trying to make Grok happen

2026-05-22 · Source: The Verge · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation, Corporate Strategy & Leadership · Depth: Fundamental Awareness, short

Summary

Elon Musk's Grok AI chatbot is underperforming and seeing limited adoption, according to a *Reuters* report. A review of over 400 US government AI use examples found Grok or xAI mentioned only three times for basic tasks, while OpenAI appeared over 230 times and Google/Anthropic dozens. Public AI leaderboards also show Grok rarely ranks in the top 10, with a Pentagon source noting preference for Gemini or Claude. This poor performance is problematic for SpaceX, which absorbed xAI and positions Grok as central to its IPO, citing a "\$28.5 trillion" AI market opportunity. Furthermore, xAI admitted using rival OpenAI models for training, and Grok's consumer version has a history of controversial, offensive, and conspiratorial outputs, including praising Hitler and generating nonconsensual deepfakes. SpaceX's IPO filing acknowledges "heightened risks" from Grok's "spicy" modes.

Key takeaway

For investors evaluating SpaceX's IPO or other AI ventures, you should critically assess the actual market adoption and performance of core AI assets like Grok. Your due diligence must extend beyond ambitious market projections, considering the significant reputational and regulatory risks associated with models exhibiting controversial or "unhinged" outputs. Prioritize vendors demonstrating proven enterprise utility and robust ethical guardrails to mitigate future liabilities.

Key insights

Grok's poor performance and controversial outputs undermine its market viability and SpaceX's IPO strategy.

Principles

• AI model quality dictates adoption, even with strong backing.
• Controversial AI outputs pose significant reputational and legal risks.
• Market valuation tied to unproven AI assets carries substantial risk.

In practice

• Evaluate AI models based on independent performance benchmarks.
• Scrutinize AI vendor claims against real-world adoption data.
• Assess AI's ethical risks, especially for public-facing applications.

Topics

• Grok
• xAI
• SpaceX IPO
• AI Chatbots
• AI Model Performance
• AI Ethics

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• German court rules on Google AI liability — AI content liability is shifting to platform providers, while market dynamics are driving a price war in advanced AI models.
• Grok falls flat in Washington, undercutting SpaceX's AI growth story — xAI's Grok chatbot has failed to secure U.S. government adoption, impacting SpaceX's AI growth narrative for its IPO.
• SpaceX Listed Grok’s ‘Spicy’ Mode as a Risk in Its IPO Filing — AI features with reduced safety filters pose regulatory and reputational risks for companies, as highlighted in SpaceX's IPO filing.
• Four theories about the SpaceX - xAI merger — The SpaceX-xAI merger is likely a bailout for xAI, which faces significant financial and market challenges.

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Verge.