By Sagar V. Mankar 
Elon Musk announced the formation of a new AI gaming studio under his xAI company during a livestream showcasing their latest AI model, Grok 3.
“We’re launching an AI gaming studio at xAI. If you’re interested in joining us in building AI games, please join xAI,” Musk stated during the presentation.
The new studio is still in its early stages, with a team of just nine members including Musk himself, according to social media posts from an xAI employee.
During the presentation, Grok 3 successfully created a basic version of Tetris using Python code. Another user example showed Grok 3 generating “Bubble Trouble,” a 2D game complete with physics, collisions, and a basic user interface. However, the AI struggled to incorporate the requested retro sound effects.
Musk later shared additional information on social media, noting that the team is “working on being able to integrate photo-realistic graphics into AI games for the xAI game studio.” He also claimed that users can improve graphics resolution simply by asking Grok to do so.
As reported by Tom’s Hardware, while the gaming studio is still in early development, Grok 3 has demonstrated impressive capabilities. Benchmark tests show that both Grok-3 and its smaller version, Grok-3 mini, outperform competitors like GPT-4o, Gemini-2 Pro, DeepSeek-V3, and Claude 3.5 Sonnet across various performance categories.
Meanwhile, AI’s role in gaming continues to grow. In January, Capcom announced a partnership with Google Cloud to use generative AI tools like Gemini Pro and Imagen to generate background assets and unique design ideas for their future games.