18th March 2025, Kathmandu
In a significant move to bolster its capabilities in generative AI, Elon Musk’s artificial intelligence company, xAI, has acquired Hotshot, a startup specializing in AI-powered video generation.
xAI Acquires Hotshot AI Video
The announcement was made by Hotshot CEO Aakash Sastry in a post on X (formerly Twitter), where he expressed excitement about joining forces with xAI.
Over the past two years, Hotshot has developed three foundational AI models—Hotshot-XL, Hotshot Act One, and Hotshot—which generate realistic videos from text inputs. These models have provided a glimpse into how AI will revolutionize industries such as education, entertainment, and productivity.
Sastry emphasized the potential to scale Hotshot’s work using xAI’s advanced computing infrastructure, Colossus, the world’s largest AI cluster. “We’re excited to continue scaling these efforts on the largest cluster in the world, Colossus, as a part of xAI,” he said.
Hotshot has attracted investments from prominent backers, including Reddit co-founder Alexis Ohanian, Lachy Groom, and SV Angel. However, the financial terms of the acquisition have not been disclosed.
In his announcement, Sastry thanked the Hotshot team, investors, and customers for their support. He also paid tribute to co-founder John Mullan, describing him as “the best co-founder, engineer, optimist, and friend” he has ever met.
The acquisition aligns with xAI’s broader strategy to compete with leading generative AI companies like OpenAI and Google. Musk has previously hinted at developing video-generation capabilities for xAI’s Grok chatbot platform, with a potential “Grok Video” model expected to launch soon.
As part of the transition, Hotshot has begun winding down its operations, allowing users to download their videos until March 30. It remains unclear whether the entire Hotshot team will join xAI, but Sastry expressed enthusiasm about collaborating with xAI’s team, including former colleague Chaitanya Ualuru.
This acquisition marks xAI’s first major move into AI-powered video generation and signals its ambition to expand its technological footprint. By integrating Hotshot’s expertise, xAI could enhance its Grok platform and introduce innovative AI-driven features for X, the social media platform formerly known as Twitter, which Musk also owns.
Sastry concluded his announcement on an optimistic note, stating, “An exciting future is on the way. We’re stoked to drive there with xAI. We can’t wait to show you what’s coming next.”
The industry will be watching closely as xAI and Hotshot collaborate to push the boundaries of AI-powered video generation and redefine the future of technology.
For more: xAI Acquires Hotshot AI Video