Elon Musk said on Monday that his artificial intelligence startup xAI will release a “great AI-generated game before the end of next year.”
That announcement comes as xAI is actively hiring a “video games tutor” to teach its systems how to build and critique games, making clear Musk’s ambition to turn Grok into a bona fide tool for video game development.
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
Musk first floated the idea of launching a gaming studio backed by xAI last November. The job posting offers $45 to $100 an hour for the “video games tutor” role—compared with the average U.S. game developer salary of about $116,250 a year, or roughly $52 an hour in 2025.
“As an AI tutor specialized in video games,” the listing states, “you will contribute to xAI’s mission by training and refining Grok to excel in video game concepts, mechanics, and generation.”
Elon Musk: We’re launching xAI’s Gaming Studio tonight.
“We’re launching an AI Gaming studio at xAI. If you’re interested in joining us and building AI games, please join xAI! We’re announcing it tonight. Let’s go!”
xAI presentation, February 17, 2025 pic.twitter.com/VAQ5QtML51
— ELON CLIPS (@ElonClipsX) February 18, 2025
The role xAI adds will “directly impact Grok’s capabilities in producing engaging, fun, innovative video games.”
xAI’s hiring drive comes amid widespread experimentation with AI in gaming. As generative image and content models advance, Musk has predicted that AI’s impact on gaming will be “massive.”
It already is: A recent Google Cloud-Harris Poll survey found that 87% of developers are using AI agents that adapt to players in real time—a trend that promises efficiency, but also raises worries about a loss of human creativity and variety.
According to Dimension Market Research, the global AI-in-game-development market is expected to jump from roughly $3.2 billion in 2025 to nearly $58.8 billion by 2035.
Whether game developers adopt Grok, however, could be impacted by whether they trust the AI, given its past performance and controversies—including a “MechaHitler” meltdown in July, and creating not-safe-for-work deepfake content, as it did with nude images of Taylor Swift in August.