Grok Can Now Generate Videos: xAI Acquires Hotshot

Elon Musk’s xAI has acquired Hotshot, a startup specializing in AI-powered video generation models.

The acquisition was confirmed by Hotshot co-founder and CEO Aakash Sastri in a post on X. Hotshot has developed three models—Hotshot-XL, Hotshot Act One, and Hotshot—capable of generating videos from text descriptions.

Originally focused on image editing tools, Hotshot later pivoted to AI-driven video generation. Now, it will operate under xAI and continue its work within Musk’s Colossus, the world’s largest AI computing cluster.

With this acquisition, xAI moves closer to competing with OpenAI’s Sora and Google’s Veo 2. Musk previously hinted that xAI was working on a video generation AI, which could be integrated with the Grok chatbot. In early 2025, he suggested that "Grok Video" would be released in the coming months.