Elon Musk Reveals Big Gaming Plans: xAI To Launch ‘AI-Generated Game’ By 2026

Elon Musk has announced that his artificial intelligence company, xAI, is developing an AI-generated video game, which is set to release before the end of 2026. The tech billionaire confirmed the development through a post on microblogging site X (formerly Twitter). Musk said that the upcoming title will be a “great” AI-generated game. Also Read: Why Thousands Are Cancelling Netflix After Elon Musk’s Latest Tweet

Musk’s Vision for AI in Gaming

This isn’t the first time Musk has spoken about his interest in video games built by AI. Back in late 2024, he criticised how most major game studios are owned by large corporations and hinted that xAI would enter the gaming space with a more independent, AI-driven approach. The latest update now confirms that the plan is finally in motion. Also Read: Elon Musk’s xAI Fires 500 Employees? Report Suggests Major Layoffs

The XAI game studio will release a great AI-generated game before the end of next year https://t.co/F14rJXNzk9 Also Read: Elon Musk Shows How Grok Imagine Can Turn Your Odd Ideas Into Shareable Talking Videos

— Elon Musk (@elonmusk) October 6, 2025

Earlier this year, Musk also said during an xAI presentation that the company was “launching an AI gaming studio” and invited developers to join the effort. Since then, xAI has been hiring talent for its gaming division, including a role for an “AI video game tutor” whose job is to train and refine xAI’s chatbot Grok in understanding gaming principles, mechanics, and generation.

Will Grok Power the Game?

The new AI-generated game could heavily rely on Grok’s capabilities. Musk’s post was made in response to another user who claimed Grok might one day generate video games dynamically. While Musk didn’t confirm whether the upcoming title will be fully dynamic, his reply suggests that Grok could play a creative role in game design or storytelling.

Growing Competition in AI-Driven Games

Musk’s announcement comes at a time when AI-generated entertainment is rapidly evolving. Earlier this year, Microsoft also showcased the AI-generated playable demo of the classic Quake II game. On the other hand, Google’s DeepMind has been experimenting with AI models that can help develop AI-generated video games.

Interestingly, Musk’s announcement also coincides with the latest update to Grok Imagine, which improves AI video generation quality and speed. While xAI hasn’t confirmed whether this tool will be used in the game’s development, it’s clear the company is positioning AI as a creator – not just an assistant – in the future of gaming.