Elon Musk has announced that his AI company, xAI, is developing an AI-generated video game. The billionaire plans to release it before the end of 2026.On October 6, Elon Musk took to X to share the news, while quoting another post that mentioned his AI platform, Grok. The original post featured an AI-generated video and predicted that video games would be generated by Grok in the future. Musk quoted the post and wrote:"The XAI game studio will release a great AI-generated game before the end of next year."Fans took to X to react to Elon Musk's announcement. Many believed the development was unnecessary. One X user wrote:"Literally nobody asked for this."SUAREZ @suayrezLINK@Dexerto Literally nobody asked for thisNetizens continued to share their opinion on the matter:Stables 💳 @stables_moneyLINK@Dexerto Imagine dying in-game, and it tweets about it for youChuunibyou Guild @ChuunibyouGuildLINK@Dexerto As someone who likes AI, this is going to be absolute Slop, like King Slop. It's going to make all the other slop look like Half-Life 3: Episode 3 Part 3, 3rd Year Anniversary Edition.Pørt @PortwillmakeitLINK@Dexerto Elon Musk when it comes to doing things no one asked forSome other reactions to the announcement were as follows:Krabs @theKrabs_11LINK@Dexerto Releasing AI slop in the same year as GTA 6 and WolverineIain @elephantbridgeLINK@Dexerto Nobody wants to play a game that was manufactured by ai. The point of art is that a human was behind it and there's some meaning to everything present in the final piece. This is a terrible idea and it's lazyNUGSafrin @NUGSafrinLINK@Dexerto First video game with 0 downloadsAccording to Dexerto, Musk's AI company, xAI, has already begun hiring game developers and other game-related staff. Earlier this month, a report from Business Insider also claimed that xAI is looking for "video games tutors" to develop more gaming content related to storytelling, graphics, and design concepts.As of now, Musk's AI is best known for developing Grok, a conversational AI tool known for its responses as well as image and video generation. It is also a regular feature on X, which Musk purchased in 2022.Elon Musk's xAI is reportedly hiring talent to develop an AI video gameMusk Meets With Republican Lawmakers On Capitol Hill (Image via Getty)According to the aforementioned Business Insider report, Elon Musk's company xAI is hiring video game developers to work on their new AI-generated game. The roles are reportedly offering $100 per hour, with the billionaire ready to invest a huge amount in this project.This is also not the first time Musk has hinted at his elaborate plans of making AI games through xAI. In November 2024, the Tesla founder took to X to hint at his plans, as he wrote:"Too many game studios that are owned by massive corporations. @xAI is going to start an AI game studio to make games great again!."As of now, there is no fully AI-generated video game in the market. Therefore, if Elon Musk releases the game, it will be the first of its kind. However, developers have already begun integrating AI technology in game development, taking its help in asset creation or procedural generation.It will mark one of the most-awaited projects of integrating AI technology into the world of gaming. Given Musk's previous developments and innovations, expectations from the game will also remain high.Meanwhile, Musk also has other elaborate plans for xAI. In an interview with CNBC in May this year, the Tesla CEO claimed that AI development could face power generation problems by mid-2026 because of the emergence of major data centers. He also revealed that xAI is planning to establish a gigantic facility outside Memphis, Tenn., which will be ready within six to nine months."As we solve the transformer shortage, there will be the fundamental electricity generation shortage. My guess is people are going to start hitting challenges with power generation maybe by the middle of next year, end of next year," Elon Musk said in the interview.Moreover, Elon Musk has also teased multiple new projects, including major development in AI image generation, video making, and other creative pursuits. He is also expected to launch Grokipedia, set to rival Wikipedia, in two weeks.