Elon Musk’s xAI to launch revolutionary AI-generated video game in 2026

The tech billionaire Elon Musk has announced that his company xAI will release its first AI-generated video game by the end of 2026.

Taking to his social platform X (formerly Twitter), Musk revealed, “The xAI game studio will release a great AI-generated game before the end of next year.”

The project is part of xAI’s broader mission to apply artificial intelligence (AI) across various industries, and it will reportedly use technology from the company’s Grok chatbot to power the game’s development.

The announcement follows Musk’s recent reveal of Grokipedia, an upcoming AI-driven alternative to Wikipedia.

Together, these initiatives mark Musk’s growing push to position xAI as a leader in next-generation AI applications beyond chatbots and data analysis.

Musk first hinted at the creation of an AI-powered game studio in late 2024, criticising the gaming industry for being dominated by “large corporations.”

He launched the studio under the provocative slogan, “Make games great again.”

According to early reports, the studio aims to build games with smarter, more realistic AI characters capable of adapting dynamically to players’ choices, offering an experience unlike anything currently available.

xAI has also begun hiring developers for the ambitious project. Earlier this week, Musk confirmed a recruitment post on X from @techdevnotes that read, “xAI is hiring for video games,” to which he replied simply, “True.”