xAI has acquired Hotshot. This company developed models that convert text into video. For xAI, it represents an opportunity to compete with OpenAI’s Sora, among others.
A post on X Hotshot CEO Aakash Sastry reveals that his company has immediately been integrated into xAI. No financial details regarding the acquisition price were disclosed.
Hotshot was established several years ago by Aakash Sastry and Jon Mullan. Initially focused on developing photo editing tools, the company later redirected its efforts toward video generation, similar to OpenAI’s Sora. The company developed three models: Hotshot XL, Hotshot Act One, and Hotshot. These systems enable the conversion of text descriptions into video content.
More possibilities
Sastry anticipates that xAI’s acquisition will facilitate broader AI implementation across education, entertainment, communication, and productivity sectors. He hopes to advance the technology further through Musk’s Colossus supercomputing initiative. Elon Musk is the owner of xAI.
As a result of the acquisition, Hotshot has suspended new user registrations. Existing customers will maintain access to download their AI-generated videos until March 30.
xAI wants its own video model
For xAI, this acquisition appears to be a strategic step toward developing its own video generation model. This would position the company to compete directly with OpenAI’s Sora and Google’s Veo 2.
Elon Musk recently announced that video functionality, dubbed “Grok Video,” will soon be integrated into the Grok AI chatbot. The underlying model is expected to be available within the coming months.
Also read: Video generator Sora available in EU, was patience a virtue?