Elon Musk Confirms xAI’s AI Game Studio to Tackle Corporate Monopoly in Gaming

Elon Musk's Ambitions to Revolutionise Gaming with AI

Elon Musk, the tech mogul known for his ventures with Tesla and SpaceX, is turning his attention to the gaming industry.

This week, he reiterated plans for his company xAI to launch an AI-driven video game studio.

Musk’s vision comes after he initially shared the idea on social media in November.

Despite not specifying when the studio would be operational, he responded positively on X to a user’s post about the team’s progress, confirming that the project is still on track.

xAI’s Plans to Transform Game Development

Musk’s ambition to bring AI into game creation has stirred interest in the industry.

He has long voiced his dissatisfaction with the gaming world’s current direction, particularly the concentration of large corporations controlling major studios.

Last November, Musk expressed on X a desire to "make games great again" by tapping into AI technology.

Hinting at xAI's potential to disrupt the sector, he wrote,

“Too many game studios that are owned by massive corporations.”

Musk has previously been vocal about the issues within the gaming landscape, which he believes could be reinvigorated by AI innovation.

Musk’s Long-Standing Passion for Gaming

This isn't the first time Musk has shown an interest in game development.

Over the years, he has frequently discussed the potential for his companies to delve into the gaming space.

In February 2024, Musk mentioned that a Tesla-developed game could be on the horizon, contingent on the rollout of Tesla’s Unsupervised Full Self-Driving (FSD) system.

While FSD is currently a priority, he indicated that making a game would follow once the technology reaches a sufficiently advanced stage.

Musk has also shared that he personally developed a game, "Blastar," back in 1984, showcasing his early involvement in the industry.

AI and the Future of Gaming

With AI set to transform game development, Musk’s xAI is gearing up to bring powerful AI systems into the heart of the creative process.

The generative AI market in gaming is set for substantial growth, from $1.43 billion in 2024 to an estimated $11.11 billion by 2033.

Musk’s plan comes at a time when other major players, such as Google and NetEase, are also exploring AI tools for game creation.

This shift could alter the way games are designed, produced, and experienced, potentially opening up new avenues for innovation.

Musk’s Personal Gaming Involvement

Beyond his ambitions with xAI, Musk remains an avid gamer.

He has openly shared his gaming interests on social media, citing titles like "Civilization" and "Elden Ring" as favourites.

Musk’s involvement in gaming isn’t just recreational; he has also been actively competitive.

For example, he set records in "Diablo IV" and caused a stir when admitting to using a game booster during a live stream of "Path of Exile 2."

Musk defended the move, explaining the need for an edge in competitive gaming environments.

His dedication to gaming dates back to his time as an intern at Rocket Science Games, where he contributed to game programming.

xAI's Grok Model and Broader Plans

Musk’s remarks on AI followed the launch of xAI's Grok 3 earlier today, showcased during a live demonstration.

Earlier, in December 2024, xAI made the Grok model accessible to all X users, removing the previous paywall for premium account holders.