Elon Musk's xAI to Launch AI Game Studio

xAI CEO Elon Musk has confirmed that the company is launching a game studio to reshape the gaming industry. Announcing xAI’s latest model, Grok-3, Musk said, “We’re launching an AI gaming studio at xAI. If you’re interested in joining us and building AI games, please join xAI.”

Musk, an avid gamer, has criticised the influence of present-day politics on video games. “Video games are meant for you to be immersed in an exciting and creative alternative reality and have fun with friends. Adding present-day political bullshit kills the vibe,” he said previously. 

The announcement follows a recent interaction between Musk and Google DeepMind CEO Demis Hassabis on X. DeepMind introduced Genie 2, a world model capable of generating playable 3D environments. 

Hassabis stated that the world model is developing, and Musk agreed enthusiastically to collaborate on an AI game.

Musk’s history with gaming includes working as an intern writing software for Rocket Science, a game company, and ranking among the top 20 Diablo 4 players worldwide. 

He previously expressed interest in Tesla's creation of a video game and has wanted to pursue the idea for a long time. However, he acknowledged that Tesla continues to focus on developing fully unsupervised technologies.

xAI calls its latest Grok 3 model the smartest AI on earth. In benchmarks presented by the xAI team, Grok-3 outperformed Google Gemini-2 Pro, DeepSeek-V3, Claude 3.5 Sonnet, and GPT-4o across evaluations such as AIME, GPQA, and LCB.

Musk, during the live stream of Grok 3, revealed that their supercomputer Colossus currently has 200,000 GPUs. However, the company is expanding its AI infrastructure. The Greater Memphis Chamber announced that xAI is adding over 1 million GPUs to its Colossus Supercomputer. xAI is reportedly in talks to raise $10 billion in funding.