K-Culture GlossaryㅇThe companies in the headlines
xAI
The company Elon Musk founded to build Grok. In 2026 it was absorbed into SpaceX, so it's no longer an independent company.
In plain words
xAI is an AI company Elon Musk founded in 2023, and the model it builds is called Grok. What sets it apart from other chatbots is that it works directly inside X (formerly Twitter).
The company's structure has changed unusually often, so writers need to be careful. In 2025, xAI acquired X, and in 2026, SpaceX acquired xAI. So today, Grok isn't a product of an independent company—it's made by the AI division inside SpaceX. That's why any sentence starting with "xAI does..." needs a timestamp check.
All of its models are built in-house. xAI doesn't use other companies' models; it trains them at a massive data center it built itself in Memphis, Tennessee. As of August 2026, the latest model is Grok 4.6, which shook up the pricing landscape by offering top-tier performance at half the price. Its coding agent, "Grok Bot," also runs inside Cursor, the code editor that now sits under the same SpaceX roof, and its image generation product is called Imagine.
There's another company with a similarly pronounced name. Groq—which started out making AI inference chips (LPUs) and later pivoted to becoming an NVIDIA-based cloud provider—is a completely separate company with no connection to Musk. In articles, the chatbot company is spelled "Grok" and the chip company "Groq" to keep them distinct.
How it shows up in the news
"xAI released a new version of Grok" — if the article is from 2026 or later, it's worth double-checking the corporate structure first. xAI is now a subsidiary of SpaceX.
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