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Key Takeaways

Elon Musk’s xAI unveils plans for an AI game studio, aiming to reshape the gaming industry.
Alongside this news, xAI is reportedly gearing up to release a standalone chatbot app to compete with ChatGPT.

Elon Musk has unveiled plans for xAI, his artificial intelligence company, to enter the gaming industry by creating an AI game studio.

Too many game studios that are owned by massive corporations. @xAI is going to start an AI game studio to make games great again! https://t.co/UR4nFODyfd

— Elon Musk (@elonmusk) November 27, 2024

Musk announced the initiative on X, stating the goal is to improve game quality, which he argues has declined due to corporate ownership.

The post was a reply to Dogecoin creator Billy Markus, known as Shibetoshi Nakamoto, who criticized the current state of gaming.

Markus lamented how game developers and journalists have become “ideologically captured,” stating that gamers have traditionally been opposed to greed, manipulation, and outsider posturing.

The announcement coincides with reports from the Wall Street Journal that xAI will soon launch a standalone consumer app similar to OpenAI’s ChatGPT app.

The app will allow users to access xAI’s Grok chatbot from personal devices.

Sources indicate the app will likely be released after xAI’s next funding round, which could bring in $5 billion and double the company’s valuation to $50 billion.

According to the Financial Times, Musk has offered investors who supported his $44 billion acquisition of Twitter 25% of xAI shares as a loyalty reward.

The startup, which has raised approximately $11 billion to date, includes backing from Fidelity, Oracle co-founder Larry Ellison, and Twitter founder Jack Dorsey.