# xAI Acquires Textual content-to-Video AI Mission Hotshot

Elon Musk’s AI startup has made its first acquisition, with video technology challenge Hotshot asserting that xAI has bought its enterprise.
Hotshot, which has constructed a spread of text-to-video and text-to-GIF AI fashions, has been gaining traction amongst AI fans for its quickly growing AI video fashions.
And now, that know-how shall be integrated into xAI’s stack, which might quickly see X customers in a position to generate video clips from textual content throughout the app.
Nicely, paying X customers at the very least.
As introduced by Hotspot:
“Over the previous 2 years we have skilled 3 video basis fashions – Hotshot-XL, Hotshot Act One, and Hotshot. We see these video fashions as an early look into the way forward for studying, leisure, communication and extra. We’re excited to proceed scaling these efforts on the most important cluster on the planet, Colossus, as part of xAI.”
xAI’s “Colossus” supercomputer cluster in Memphis was put collectively in 122 days, and now hosts 200k Nvidia H100 GPUs, bringing the challenge into line with the computing energy of different main AI tasks.
That’ll give the Hotshot crew a heap extra assets to drive their ambitions, which ought to see superior text-to-video capability coming to X’s Grok chatbot someday quickly.
Certainly, in response to the announcement, X Corp chief Elon Musk has merely remarked that:
Cool video AI coming quickly!
— Elon Musk (@elonmusk) March 17, 2025
As famous, that is xAI’s first acquisition after it gained greater than $12 billion in funding from a spread of donors over the previous two years.
The challenge is separate from X the social media app, although each come underneath the “X Corp” enterprise portfolio, whereas the 2 additionally feed into one another, with X posts powering xAI tasks, and xAI’s Grok chatbot now obtainable within the X app.
So whereas they’re separate, they’re additionally intrinsically related, which might theoretically allow Musk to funnel funds from xAI to X if wanted.
The broader hope, nonetheless, is that xAI will finally develop into an entity of its personal, with real-time insights from X offering a extra invaluable AI device for energetic engagement and development perception. That might be invaluable in a spread of how, although utilization of X’s Grok chatbot nonetheless appears pretty restricted at this stage.
Perhaps video creation shall be a key step in boosting Grok adoption, and making it a extra viable competitor for OpenAI and Meta’s AI tasks.
I imply, OpenAI is who Elon actually needs to hit, for private causes, however Meta’s additionally pushing to be the AI chief, and with Musk and Co. beforehand blasting rival AI tasks as being “too woke”, xAI may be a hedge towards what he sees as overt censorship inside AI instruments.
Both method, it’s one other step within the broader AI race, which might assist to maintain xAI within the recreation. I’m unsure that it’ll be capable of maintain tempo with Meta, which is investing one other $65 billion into AI improvement this yr alone, however Musk additionally has the within operating on the pending AI overhaul of the U.S. authorities, which might see xAI achieve plenty of profitable improvement contracts.
It’s a battle of curiosity, after all, nevertheless it appears doubtless that xAI shall be a number one candidate, as a minimum, for this effort.
Andrew Hutchinson