Elon Musk says his xAI company will release a ‘great AI-generated game’ by the end of 2026
Musk says his “xAI game studio” will be able to generate games
Elon Musk has said his AI company will be capable of generating a “great” video game by the end of next year.
Musk owns xAI, an artificial intelligence company working on numerous projects, the most notable being the Grok chatbot.
Last year, xAI introduced Aurora, a text-to-image model which lets Grok generate images with text prompts. This was then followed in July 2025 with Grok Imagine, which lets users generate six-second animated clips with sound, also based on text prompts.
Now Musk claims that his AI company will be able to not only generate a video game by the end of 2026, but that it will be “great”.
On Sunday, one user on X posted a Grok Imagine clip showing an AI-generated video of a war-like video game, saying: “Video games will be dynamically generated by Grok in the future.”
Musk then responded to the clip, saying: “The xAI game studio will release a great AI-generated game before the end of next year.”
Notably, an hour after this Musk then posted a similar message, claiming Grok “will make a movie that is at least watchable before the end of next year and really good movies in 2027”.
The suggestion that xAI would be capable of making a “great” video game by the end of 2026 but “really good movies” won’t come until 2027 may comes as a surprise to some, given that AI-generated video has been around for some time while AI-generated games are still in their relative infancy.
The XAI game studio will release a great AI-generated game before the end of next year https://t.co/F14rJXNzk9
— Elon Musk (@elonmusk) October 6, 2025
Musk stated during an xAI stream in February that the company was launching an AI gaming studio, saying: “If you’re interested in joining us and building AI games, please join xAI. We’re announcing it tonight, let’s go.”
xAI isn’t the only company experimenting with AI-generated video games. Earlier this year Microsoft launched a version of Quake 2 powered entirely by generative AI. The Quake 2 tech demo is powered by Microsoft’s new video game generative AI model, Muse, which it says can generate “game visuals, controller actions, or both.”
Reaction to Microsoft‘s demo was mainly negative, with one X user stating: “We made a program that vaguely and inaccurately imagines what it might look like if you were playing Quake 2 right now. It requires all the same equipment you could instead use to actually play Quake 2, but requires a billion times more electricity.”
“This is absolutely fucking disgusting and spits on the work of every developer everywhere,” read another, more strongly worded reply.
Microsoft CEO Satya Nadella has said it’s planning to have a catalogue of video games utilize its new generative AI mode. Commenting on Muse in February, Nadella compared it to the ‘wow’ moment he said he felt when he first saw other generative AI models such as ChatGPT.
Elon Musk worked on video games earlier in his career, during his time at Rocket Science Games in the mid-90s. He’s listed in the credits of Mega CD titles Loadstar: The Legend of Tully Bodine and Cadillacs and Dinosaurs: The Second Cataclysm – game database MobyGames says both games had the same average review score of 53% in video game magazines at the time.
