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Elon Musk announces an AI game studio under xAI

Elon Musk’s AI company, xAI, is venturing into the gaming world. He shared the plan to build its own AI game studio.

Announcing the move on X, he explained that the intention was to increase the quality of the game and to “make games great again”. Musk believes it is damaged by corporate control.

The announcement followed Billy Markus, Dogecoin’s creator, who criticized the current state of gaming.

Markus was frustrated that game developers and journalists have become ‘ideologically captured’. Gamers, historically opposed to greed and manipulation by developers, now see these things in the industry.

Elon Musk has usually voiced against the DEI approach in modern games.

Musk, a longtime gamer and top-ranked Diablo 4 player, has often spoken out about the gaming industry’s move toward identity politics and virtue signaling. He’s spoken out against pronouns and other agenda-driven content being slipped into major video games, something he views as a growing trend.

By launching an AI studio, Musk’s plan could help gamers get titles up in significantly less time than typical AAA studios. These huge budgeted gaming companies take five to ten years to bring out new games. This leads to the potential for faster AI adoption in gaming.

It was also revealed previously that xAI will soon release a standalone consumer app, similar to ChatGPT app from OpenAI. Users will be able to access xAI’s Grok chatbot on their devices with the app.

The app, which sources said will be launched after xAI’s next funding round, will raise $5 billion. This funding will take the company’s valuation to $50 billion. According to reports, as a reward for his support, Musk has reportedly offered investors 25% of xAI shares. These investors backed his $44 billion acquisition of Twitter.

In other news, Elon Musk has taken to posting the identities of relatively unknown government officials and federal workers whose jobs he wants to eliminate.

The posts give a window into the type of roles Musk plans to target as the co-director of the so-called Department of Government Efficiency (DOGE) — an unofficial department created specifically to house Musk’s promise to gut the federal bureaucracy and purge government agencies of what he considers superfluous employees.

DOGE has no inherent power, and it has not been sanctioned as an official department by Congress — but according to recent reporting, Musk and his co-director, failed presidential candidate Vivek Ramaswamy, have been in talks with members of the Trump transition and MAGA Rep. Marjorie Taylor Greene (R-Ga.) to form a congressional subcommittee tasked with converting DOGE’s recommendations into concrete legislation.

The new chair of the Senate Department of Government Efficiency (DOGE) Caucus has identified about one trillion dollars in potential federal spending cuts.

In a letter sent on Monday to DOGE advisors Elon Musk and Vivek Ramaswamy, Sen. Joni Ernst (R-Iowa) outlined her “instruction manual” of ways to eliminate government waste.

“With $3 billion of interest being added to our national debt every day, the longer we delay tackling the problem, the further away the finish line gets,” Ernst wrote in the letter. “To give you a head start, here are a trillion dollars’ worth of ideas for trimming the fat and reducing red ink.” she added.

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