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Elon Musk Promises First Fully AI-Generated Video Game Before End of 2026
October 7, 2025Elon Musk says his artificial intelligence venture xAI is planning to launch a “great” video game built entirely by AI before 2026 closes out. The announcement, made publicly over the weekend, throws down a bold marker for just how quickly the tech billionaire believes generative AI can rewrite what’s possible in gaming.
According to Musk, not only will xAI’s upcoming title be AI-generated from the ground up, he claims it’ll be good enough to stand among the best, well ahead of similar ambitions in the AI film world, which he admits will likely lag by at least a year.
xAI’s Game Studio: Ambitions and Progress
The latest statement dropped in a reply on X (formerly Twitter), after a user posted a short AI-created video of a war game generated with the Grok Imagine tool. Musk responded: “The xAI game studio will release a great AI-generated game before the end of next year.”
This wasn’t a spur-of-the-moment jab. Musk has been open about xAI’s gaming ambitions since at least February, when he said during a company livestream: “If you’re interested in joining us and building AI games, please join xAI. We’re announcing it tonight, let’s go.” The company is actively hiring for its new studio and ramping up work in the space.
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
At the core of xAI’s current technology is Grok, their chatbot designed to push boundaries in large language models. On top of Grok, the team launched Aurora last year for text-to-image generation, and as of July 2025, a tool called Grok Imagine, which expands this to short, six-second animated video clips with sound; all of it built from just a text prompt.
Musk’s timeline puts games ahead of movies for “AI-first” creative works. In a nearly back-to-back post, he said Grok, “will make a movie that is at least watchable before the end of next year and really good movies in 2027.” It’s a rare admission that, right now, the pace of progress in AI-generated video games may eclipse what’s happening on the movie side.
The State of AI-Generated Games: xAI, Microsoft, and Industry Pushback
xAI isn’t the only firm experimenting with AI game generation. Microsoft recently pushed out a demo for Quake 2 powered by generative AI, built using its own model, Muse. According to Microsoft, Muse can create “game visuals, controller actions, or both” using just prompts. But public reaction to the AI Quake 2 project has been overwhelmingly sceptical, if not hostile.
One social media user fired off: “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.” Another added, “This is absolutely (expletive) disgusting and spits on the work of every developer everywhere.”
Still, Microsoft CEO Satya Nadella isn’t backing down. He’s drawn direct comparisons between Muse’s generative moment and the “wow” feeling he says he got from seeing ChatGPT for the first time. Microsoft’s roadmap relies heavily on integrating these AI tools into a full slate of its catalogue games in the future.
AI-powered game creation is far from widespread, while AI-generated video tools have proliferated fast; AI games are still in their infancy. Musk’s vow that a “great” xAI title will debut before big breakthroughs in AI movies runs against what many would expect, given the bigger technical hurdles and the relative naivety of the space.
Musk’s passion for games isn’t new. Before launching tangents into rockets, electric cars, and AI, Musk actually worked at Rocket Science Games in the mid-90s. For the trivia crowd: he’s credited on two Sega Mega CD projects—Loadstar: The Legend of Tully Bodine and Cadillacs and Dinosaurs: The Second Cataclysm. Neither didn’t exactly set the world alight: according to MobyGames, these titles averaged 53% in contemporary magazine reviews.
As of now, all eyes in tech and gaming are waiting to see if Musk and xAI can actually deliver on this timeline. The bar, by his own public promise, isn’t just that AI can crank out a playable game, but that it can win fans and critics alike before 2027 rolls around.
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While games are fun, it’s highly important to note that there’s more to life than sitting countless hours playing video games – there’s a purpose and more to life; seek out that purpose more often!
