Elon Musk Says xAI Will Start an AI Game Studio ‘To Make Games Great Again’

Elon Musk says his AI startup xAI will set up an artificial intelligence (AI) game studio. The world's richest person made a cryptic post on X (formerly known as Twitter) highlighting his frustrations with a large number of game studios being owned by large corporations. This is not the first time Musk has posted about gaming. He recently live streamed himself playing Diablo 4 and has expressed his admiration towards video games in general. In the post, the Executive Chairman and Chief Technology Officer (CTO) of X highlighted that the AI game studio will be under xAI.

Elon Musk Hints at Starting AI Game Studio

The billionaire entrepreneur made the comments while responding to a post by software engineer Billy Markus, who co-created the Dogecoin cryptocurrency. In the post, Markus criticised the gaming industry for being “ideologically captured” and said that gamers have always rejected “dumb” manipulations by developers and gaming journalists.

Markus also highlighted that most of the games he enjoyed in the last decade have come from independent developers and studios. Replying to the post, Musk highlighted, “Too many game studios that are owned by massive corporations,” and added that xAI will soon start an AI game studio to “make games great again.”

The capabilities of AI in gaming have caught the interest of many companies operating in the sector. For instance, Google DeepMind introduced Genie, an AI model that can create endless 2D platformer video games using predictive analysis. DeepMind also unveiled Scalable Instructable Multiworld Agent (SIMA), an AI system that can interact with various gaming environments and carry out different tasks in 3D video games.

Musk's comments about game studios being owned by large corporations come days after a report claimed that Sony is planning to acquire Kadokawa, the Japanese tech company that owns Elden Ring developer FromSoftware. Last year, Microsoft also completed the acquisition of Activision Blizzard, the publisher of Call of Duty, World of Warcraft, and Diablo among others.

Musk's mention of xAI also highlights recent reports that suggest that the billionaire has big ambitions with his AI firm and wants to grow its scope to generate more revenue. The company is reportedly planning to launch a standalone AI app, similar to ChatGPT, as soon as the next month.