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Elon Musk’s xAI Teases AI-Generated Video Game Coming Next Year
- Elon Musk claimed in an X post on Monday, that his AI startup xAI will release a high quality AI-generated game by the end of 2026.
- Musk announced xAI’s entry into game development in a presentation in February and the company is now actively hiring ‘AI Tutors’ to teach Grok game development.
- Research shows AI agents are already widely being integrated into gaming workflows and user experiences.
In a Monday post on his social media platform X (formerly Twitter), the world’s richest man, Elon Musk, claimed that his artificial intelligence company xAI will launch a “great AI generated game before the end of next year.”
The post comes after Musk initially aired the idea of xAI getting into video game development last November, saying the games industry needs new competitors as too many developers are “owned by massive corporations.”
xAI’s plunge into video game development was officially announced by Musk in February, during a presentation in which he said, “we’re launching an AI gaming studio at xAI. If you’re interested in joining us and building AI games, please join xAI! We’re announcing it tonight. Let’s go!”
A job posting on the recruitment website Greenhouse shows that xAI is currently hiring “AI Tutors specialised in video games” to teach xAI’s model, Grok, how to make games.
“You will contribute to xAI’s mission by training and refining Grok to excel in video game concepts, mechanics, and generation,” the job post reads.
The job listing suggests xAI’s intention is to enable Grok to become a video game creation engine, potentially allowing users to create games similarly to how they can now create videos.
“Your work will directly impact Grok’s capabilities in producing engaging, fun, innovative video games, enabling users to explore AI-assisted game design.”
The initial response to Musk’s claim that xAI will release a great AI-generated game by the end of 2026 wasn’t entirely positive — at the time of writing, the top comment on his post, with over 10,000 likes, was “this looks like absolute dogshit.”
AI Already Big Part of Video Game Development
Already, AI is being widely integrated into the video game development pipeline, with a recent survey run by Google in collaboration with The Harris Poll finding that 87% developers are already using AI agents in their games to respond to players in real-time.
The poll also found a whopping 97% of developers believe that autonomous AI agents are revolutionising their industry, performing tasks such as coding and testing and even moderating online communities.
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In September, market research firm Dimension Market Research predicted the AI in-game development market could grow from around US$3.1 billion (AU$4.7 billion) today to over US$58 billion (AU$88.3 billion) by 2035.
In its research, Dimension wrote that “AI is reshaping game production pipelines: machine learning and deep learning accelerate procedural content generation, realistic NPC behavior, voice-to-speech and speech-to-voice systems, automated QA, and intelligent matchmaking,” adding that by leveraging AI, game development studios will be able to “shorten iteration cycles and deliver personalization at scale.”
Author
Jody McDonald
Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.
