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SpaceXAI Launches Grok 4.5 As It Pushes Harder Into The AI Model Race

SpaceXAI Unveils Its Latest Flagship Model

SpaceXAI has released Grok 4.5, its newest model and the first major launch since the company went public several weeks ago. In a blog post published Wednesday, the company positioned the model as a practical workhorse built to handle the core tasks businesses are increasingly trying to automate: coding and app development, office and clerical workflows, research, writing, and other forms of routine knowledge work.

Efficiency Becomes A Competitive Advantage

Beyond raw capability, SpaceXAI is making a clear cost argument. The company says Grok 4.5 delivers “twice greater token efficiency” than other leading models, a claim that could matter as AI spending comes under closer scrutiny across enterprises. Token costs have become a meaningful line item for AI customers, particularly for teams deploying models at scale. If SpaceXAI’s efficiency claims hold up in real-world use, they could give the company a stronger position in a market where performance is increasingly judged alongside economics.

Benchmark Results Show Strong But Not Dominant Performance

SpaceXAI also released benchmark data on Wednesday that suggests Grok remains highly competitive with leading models from rival labs, though still just short of best-in-class performance in some categories. The company’s message is straightforward: Grok 4.5 is meant to compete at the top end of the market without carrying the same price burden as the most expensive frontier models.

Musk Frames Grok As An Opus-Class Rival

On X, the social platform owned by SpaceXAI, founder Elon Musk compared Grok 4.5 with Opus, Anthropic’s model family built for demanding and complex tasks. “Based on strong positive feedback from customers in our beta test program, SpaceXAI will make Grok 4.5 available to the public tomorrow. It is an Opus-class model, but faster, more token-efficient and lower cost,” Musk wrote. He later added that internal testing suggested Grok 4.5 is “roughly comparable to Opus 4.7, but much faster,” arguing that the combination of capability, speed, and lower cost is what makes it competitive.

Pricing May Be The Real Story

SpaceXAI says Grok 4.5 will cost $2 per million input tokens and $6 per million output tokens. That pricing is notably aggressive if the model performs as advertised. By comparison, Opus 4.7 costs $5 per million input tokens and $25 per million output tokens. OpenAI’s pricing structure varies by model tier: its most expensive model, Sol, costs $5 per million input tokens and $30 per million output tokens, while its least expensive, Luna, is priced at $1 per million input tokens and $6 per million output tokens.

A Busy Week For Frontier AI Releases

The launch comes during a crowded week for major model announcements. OpenAI is expected to release GPT 5.6, its newest and most powerful model, on Thursday. The rollout had previously been delayed by the Trump administration over security concerns. OpenAI has described the model as its “strongest model yet,” underscoring how quickly the competitive stakes continue to rise at the top of the AI market.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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