Elon Musk’s artificial intelligence company, xAI, has purchased a start-up company that can create AI-generated videos.
xAI has acquired Hotshot.co, a New York-based start-up that enables users to create videos that look realistic, but are really AI. Terms of the deal were not made public. However, Hotshot.co is an extremely small company, counting only four employees.
Analysts were quick to say that the purchase of a company that creates AI-generated videos is an attempt by Musk and xAI to catch-up with rival OpenAI, which has made a big push into AI-generated images and videos over the past year.
Challenge Accepted
Hotshot.co was founded in 2017 and has the backing of some notable investors, including Reddit (RDDT) co-founder Alexis Ohanian. Musk launched xAI two years ago with the stated goal of creating a rival to OpenAI, the nonprofit research lab behind ChatGPT and other AI models. The acquisition of Hotshot.co gives xAI the ability to offer AI video capabilities as part of its rival Grok chatbot.
OpenAI, which Musk helped to co-found in 2015 before parting ways with the company, has its own edge AI video tool called Sora that is available with OpenAI’s paid services. AI video tools have allowed users to create and edit content at a much lower cost, and they are increasingly used in social media and advertising production.
Is TSLA Stock a Buy?
As xAI is not publicly traded, we’ll look instead at Elon Musk’s other company, electric vehicle maker Tesla (TSLA). The stock of Tesla currently has a consensus Hold rating among 37 Wall Street analysts. That rating is based on 12 Buy, 13 Hold, and 12 Sell recommendations issued in the last three months. The average TSLA price target of $327.97 implies 37.80% upside from current levels.
Read more analyst ratings on TSLA stock
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