Elon Musk is no stranger to bold claims, and now he has added another, saying his next AI system could bring tech closer to its holy grail. The Tesla (TSLA) and SpaceX chief announced that Grok 5, developed by his firm xAI, will launch before the end of this year and suggested it could be the first true artificial general intelligence, or AGI. If Musk’s claims are correct, Tesla shares could also be positively affected, as the company will most likely implement Grok’s capabilities across Tesla’s models.
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Nevertheless, Musk’s statement comes amid an intense AI arms race, not only between nations but also among tech giants. One clear winner so far is Nvidia, whose chips power nearly every major player in the field. For NVDA shareholders, that’s reason enough to smile.
Meanwhile, TSLA stock has experienced a nice rally on Friday, jumping more than 6%.
Grok 5 Targets AGI as AI Race Speeds Up
Training for the model is set to begin next month on Colossus, a supercomputer that runs on more than 100,000 Nvidia (NVDA) graphics chips. The company says Grok 5 will offer stronger reasoning and new features for images and video. It will follow the launch of Grok 4 in July, which earned praise across the industry. That model also scored high on reasoning tests that are often seen as key benchmarks for advanced AI.
Musk’s timeline is short compared to normal cycles for model upgrades. While AGI remains a concept that no firm has reached, his claim adds to the competition in the sector. OpenAI, Google (GOOG), and Anthropic have all released new versions in recent months, and each company has said it plans to keep improving systems at a rapid pace.
Nvidia Gains Spotlight as AI Arms Race Grows
A key aspect to follow in this development is the supply chain behind these AI projects. Nvidia stands out as a key player since each new system needs more chips and more compute power. Its stock has climbed on strong demand for data center products, and new projects like Grok 5 could keep that trend in focus. Tesla may also see growing attention if Musk uses xAI tools across its own services in the future, which would impact the company’s overall performance.
At the same time, other tech giants like Microsoft (MSFT) and Google may look to match Musk’s plans as they expand their AI tools. Analysts note that short-term moves could follow any updates from these firms or from chip makers that support them. For now, Grok 5 is not live, and the next steps will show if Musk’s goals can become real. The timeline is set, but the outcome is still open as the race to build stronger AI continues.
What Is TSLA’s Stock Price Target?
On the Street, Tesla continues to divide opinions with a Hold consensus rating. The average TSLA stock price target stands at $305.37, implying a 10.19% downside from the current price.
