Elon Musk’s xAI to Launch First AI-Generated Video Game
- by ChannelNews
- Oct 12, 2025
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Elon Musk’s artificial intelligence company xAI is moving into gaming, with plans to launch its first AI-generated video game by the end of next year.
According to reports, xAI has recently hired AI researchers from Nvidia to work on advanced “world models” – a new class of AI that can understand and simulate physical environments.
These systems could enable Grok to generate dynamic, photorealistic game worlds that adapt in real time based on player behaviour.
Founded in 2023, xAI is best known for its chatbot Grok, which competes with OpenAI’s ChatGPT.
Now, Musk is using the company’s massive computing infrastructure, including its Colossus data centres, some of the largest in the world, to train AI models capable of building and running entire 3D game environments.
The XAI game studio will release a great AI-generated game before the end of next year https://t.co/F14rJXNzk9
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