xAI hired Zeeshan Patel and Ethan He, two researchers from Nvidia knowledgeable in simulation-based AI development.

Nvidia has consistently been at the forefront with its Omniverse platform, enabling developers to produce intricate, physics-driven simulations. Certain technology firms think that world models might ultimately change AI into a system that operates in both digital and physical domains, encompassing humanoid robots.

Nvidia recently indicated that the possible global market for world models might equal the size of the entire global economy. That’s the level of aspiration currently propelling this technology forward. Elon stated on X that xAI intends to release an AI-generated game by the end of next year, affirming a target he initially announced in 2024.

The announcement establishes a definitive schedule for xAI’s gaming goals, linking Musk’s efforts to combine simulation, creativity, and real-world engagement.

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This week, xAI launched a new model for generating images and videos featuring what they described as "significant enhancements," offered at no cost. The firm claimed that the model produces clearer videos with more realistic motion.

In contrast to existing systems such as OpenAI’s Sora, which anticipates frames based on learned image data, world models are designed to comprehend cause-and-effect relationships – how gravity, objects, and space operate in real time. This enables them to create authentic movement and physics rather than merely visuals.

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To enhance its operations, xAI is recruiting technical personnel for its "omni team," which specializes in generating images, videos, and audio. Job postings characterize it as developing AI experiences that go beyond text, encompassing multimedia production. The salaries range from $180,000 to $440,000 annually, based on the level of seniority.

There is a job listing for a "video games tutor" who will instruct Grok in creating and designing video games. That position offers $45 to $100 per hour, designed to assist users in exploring game development with AI support.

 

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Elon collaborates with Meta and Google in advancing world models, yet the hurdles remain significant. To train AI to mirror the real world, extensive datasets (including video, physics information, and 3D maps) are essential, which are expensive to collect and analyze. Despite having Nvidia hardware and expertise, xAI encounters both technical and financial challenges in scaling these systems efficiently.

Not all individuals in the gaming community are persuaded. Michael Douse, the publishing head at Larian Studios, which developed Baldur’s Gate 3, expressed on X that AI won’t address the game industry’s “major issue,” emphasizing that it relates to “leadership and vision.”