Musk’s xAI Enters Agentic Coding Arena with New AI Model

Published: 29 Aug 2025

Author: Precedence Research

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Elon Musk's XAI has launched Grok-code-fast-1, and it will be available to users at no cost for a limited period. They have launch partners for this, named GitHub and Windsurf. AI-based companies like Microsoft and OpenAI are developing AI coding assistants that will be available alongside human users or coders. According to the statement released by xAI, “Its strength lies in delivering strong performance in an economical, compact form factor, making it a versatile choice for tackling common coding tasks quickly and cost-effectively."

In May, Microsoft introduced a feature for GitHub, featuring Copilot, a coding agent, at its annual software developer conference. OpenAI has an agent called Codex, which was made available to ChatGPT Plus users in June. Amid this, XAI warned and took legal action against OpenAI and Apple in the U.S. federal court in Texas, accusing them of illegally conspiring to thwart competition in Artificial Intelligence.

Groke-code-fast-1 is an AI-powered coding model that can approach various tasks related to coding, offering constant support for developers. According to XAI, this feature will provide high-performance code generation with affordable prices and emerge as the best alternative for everyday coding efforts. Moreover, this model will be made available at no cost for a specific period. This well-organized plan showcases XAI’s conviction in supporting the rapidly changing coding landscape with an AI model for real-world developers. 
However, Microsoft and OpenAI have already established themselves in this domain, where XAI is trying to enter. For example, the leading tech giant Microsoft has added GitHub Copilot, a code writer powered by AI. The CEO of Microsoft has admitted that nearly 20-30% of the code has already been written by AI-based coding agents.

Similarly, OpenAI launched the Codex agent and made it available to its ChatGPT Plus users, further solidifying AI’s role in the coding domain alongside developers and enabling it to be used as an assistant instead of humans for accuracy in software development. AI is expanding across every sector and strengthening its position in the global market by highlighting its inevitability in the years to come.