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AI TRENDS | xAI Increases Investment in Video and Image Generation Tools, Sources Say

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2026-06-25 11:53:58
Sources said xAI is increasing investment in video and image generation tools as it seeks to differentiate its multimodal capabilities. According to Odaily, the sources said OpenAI and Anthropic have been relatively restrained in visual generation, leaving room for xAI to enter.

xAI reportedly released an upgraded video model last week, highlighting continued efforts in visual generation. The sources added that xAI is also bringing in external partners in areas such as coding to compete with rivals.

People familiar with the matter said xAI is working to boost user interest and sharing around its AI video tools and views them as a key focus for the next stage of product competition. They also said SpaceX has publicly supported and mentioned xAI’s AI video tools as being popular.
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