xAI is ramping up its investment in video and image generation tools, aiming to carve out a competitive edge in multimodal capabilities. This move comes as OpenAI and Anthropic maintain a more cautious stance on visual generation, providing xAI with an opportunity to advance in this area. Last week, xAI launched an upgraded video model, highlighting its commitment to enhancing visual generation capabilities. The company is also focusing on increasing the popularity and viral potential of its AI video tools, which it sees as pivotal in the next phase of product competition. SpaceX has publicly supported xAI's efforts, noting the growing popularity of its AI video tools. This strategic push includes forming external partnerships in areas like coding to strengthen its market position against competitors.