Tech mogul Elon Musk announced that his AI startup, xAI, plans to establish a new AI-driven gaming studio to challenge the influence of "massive corporations" producing ideologically biased video games. This announcement was in response to a post by Dogecoin co-creator Billy Markus, who criticized the current state of gaming. Musk stated that his studio aims to "make games great again, " echoing the sentiment of the MAGA movement, which he supported during the US presidential election. Markus had posted on X (formerly Twitter), expressing confusion over how game developers and journalism became ideologically driven. He mentioned that gamers have historically opposed corporate greed and manipulation, identifying outsiders quickly. Musk replied, highlighting the dominance of large corporations in gaming and announced xAI's intent to create an AI game studio to rejuvenate the industry. Previously, the Tesla CEO criticized a pronoun selection feature in the forthcoming Xbox game Avowed, calling it "utterly unacceptable" on X, accompanied by an angry emoji. Additionally, Musk labeled AI gaming as the industry's "future" and commented on a post alleging Microsoft's gaming division discriminates against Whites during hiring.

The post argued Microsoft's new hires are unqualified queer and Black individuals due to the company's policy against hiring "crusty old white dudes. " Musk tagged Microsoft CEO Satya Nadella in response, stating, "Um, @satyanadella, this is illegal. " What is xAI? Launched by Musk in July 2023, xAI emerged as an alternative to OpenAI's ChatGPT. In March, xAI announced that it would open-source its ChatGPT rival "Grok, " offering public access to the technology's code. In May, xAI secured $6 billion in Series B funding, leading to a post-money valuation of $24 billion. Investors included Andreessen Horowitz and Sequoia Capital. A new $5 billion fundraising round is anticipated, potentially doubling xAI's valuation to $50 billion within six months.