According to reports from The Wall Street Journal and tech outlet Gizmodo, the chatbot Grok from Musk’s xAI is underperforming in the market. Once highly anticipated, the product has drawn controversy for calling itself “MechaHitler” and facilitating the spread of non-consensual explicit images. Data indicates Grok has failed to establish a foothold among professional users, seeing traffic only within certain niche communities. This struggle may be a key factor driving xAI’s shift in strategy.
Facing Grok’s setbacks, xAI is quietly adjusting course. The company’s latest moves reveal a pivot from “achieving general artificial intelligence” to a more ambitious space data center initiative. xAI is not only leasing computing power from its massive Colossus data center to Anthropic — which Musk had previously repeatedly criticized as “evil” — but is also exploring sending computing clusters into orbit. According to The Wall Street Journal, SpaceX (now consolidated as xAI’s parent company) is in talks with Google about feasibility of placing data centers in orbit.


