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Elon Musk Wants to Use His xAI Startup to Create Video Games

Musk suggests recent games have become too 'woke,' and wants to 'start an AI game studio to make games great again,' a nod to the politics he's also pushed on X.

 & Michael Kan Principal Reporter

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As Elon Musk helps shape the Trump administration and US policy, he’s also turning his sights to a new venture: Developing video games.

On Wednesday, the Tesla and SpaceX CEO tweeted about creating a game studio through his startup xAI, which is also developing the Grok chatbot and other tools to compete against OpenAI’s ChatGPT.

“Too many game studios...are owned by massive corporations. xAI is going to start an AI game studio to make games great again!” wrote Musk, an avid gamer who regularly plays Diablo IV.

But it looks like Musk’s game studio will also reflect his politics. Musk's post came in response to a tweet from Dogecoin’s co-creator, Billy Markus, who is critical of today’s video games. 

“I don't understand how game developers and game journalism got so ideologically captured,” Markus posted, later adding: “Gamers have always rejected dumb manipulative BS and can tell when someone is an outsider poser.”

Musk today also took a shot at Microsoft’s Xbox team over allegations the company has been taking its diversity, equity, and inclusion efforts too far. “Can they just make good games and skip the woke lecture?? Wtf” Musk tweeted on Wednesday.  

Days earlier, Musk also posted on X/Twitter that “Having pronouns in a fantasy video game is utterly unacceptable,” citing a screenshot from the upcoming Xbox title Avowed, which will apparently let the player select their character’s gender. 

Hence, Musk's game studio might operate in the same way he’s used X/Twitter to push his politics and views in the US culture wars. However, developing a major video game is no easy feat; a large game studio typically takes years and hundreds of millions of dollars to develop a AAA title. Generative AI may streamline the game development process; earlier this month, Netflix announced its own push to use generative AI to build games.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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