Hotshot, a generative video startup, has been acquired by Elon Musk’s xAI | Bing image creator | Free generative ai text to image | Ai image generator free online | Turtles AI
Hotshot, a generative video startup, has been acquired by Elon Musk’s xAI
xAI expands its generative AI capabilities with the acquisition of Hotshot, a startup specializing in video creation using advanced AI models
Isabella V18 March 2025
xAI, the AI company founded by Elon Musk, has acquired Hotshot, a startup specializing in AI-powered video generation tools. The move could strengthen xAI’s position in the generative AI space by expanding its capabilities in the video content space.
Key Points:
- xAI acquires video AI startup Hotshot.
- Hotshot has developed models such as Hotshot-XL and Hotshot Act One.
- The acquisition could boost xAI’s offerings in the video space.
- xAI recently raised $6 billion in funding.
xAI, the AI company founded by Elon Musk, recently acquired Hotshot, an emerging AI-powered video generation startup. Founded by Aakash Sastry and John Mullan, Hotshot has developed advanced models such as Hotshot-XL and Hotshot Act One, which have shown the potential of AI to transform industries such as education, entertainment, and communications. The acquisition was announced by Sastry in a blog post on X, where he expressed excitement about the opportunity to scale their efforts using Colossus, the world’s largest cluster, now part of xAI.
San Francisco-based Hotshot initially focused on developing AI-powered photo creation and editing tools, before moving into text-to-video models. The startup has attracted the attention of notable investors, including Lachy Groom, Alexis Ohanian, and SV Angel, although funding numbers were not disclosed. With the acquisition by xAI, Hotshot’s technology is expected to be integrated to compete with products like OpenAI’s Sora and Google’s Veo 2. Musk has previously hinted at developing video generation models to add to the Grok chatbot platform, with a possible release of “Grok Video” expected in the coming months.
xAI recently raised $6 billion in a Series C funding round, valuing the company above $40 billion. These funds are intended to enhance the company’s AI products and infrastructure, positioning xAI as a significant competitor in the AI landscape, alongside giants like OpenAI and Google.
The acquisition of Hotshot is a strategic step for xAI, expanding its capabilities in the AI-powered video generation space and strengthening its position in the competitive AI market.