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Elon Musk says his AI company will launch a ‘great AI-generated’ video game in 2026

Elon Musk’s xAI is developing the first fully AI-generated video game using Grok AI with human tutors, aiming to innovate and disrupt traditional game development by 2026.

  • On October 6, 2025, Elon Musk said xAI Game Studio will release a `great` AI-generated game before the end of next year, claiming Grok will produce it.
  • The job listing shows that xAI is hiring a `Video Games Tutor` to teach Grok game design, paying $45 to $100 an hour, indicating human oversight in training.
  • Technical hires and product updates show xAI hired Nvidia researchers Zeeshan Patel and Ethan He to develop world models and launched a new image and video generation model with `massive upgrades` on Tuesday.
  • Gaming veterans and industry experts warned that AI cannot replace human leadership and vision, while highlighting copyright and trust concerns tied to Grok's past controversies.
  • XAI is building world models to generate interactive 3D environments and Grok competes with OpenAI, Meta and Google, positioning xAI against major AI players in the coming months.
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NME broke the news in London, United Kingdom on Tuesday, October 7, 2025.
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