xAI to launch AI-powered video game by 2026, aiming to merge real and virtual worlds

Elon Musk’s artificial intelligence venture, xAI, is venturing into an ambitious new frontier — creating an AI-generated video game powered by “world models.” These next-gen AI systems aim to understand and interact with the physical world, far beyond traditional text or image-based AI. This project places xAI in direct competition with Meta and Google, both developing AI capable of learning from and simulating the real world.

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