Elon Musk's AI company, xAI, is expanding into video game development, seeking candidates with game design experience.

On Thursday morning, Musk shared a post on X from the account @techdevnotes that read, "xAI is Hiring for Video Games," with Musk responding, "True."

Musk signaled interest in game development last year, writing on X: "Too many game studios are owned by massive corporations. @xAI is going to start a new game studio to make games great again!"

Musk founded xAI in 2023 with the goal of "understanding the true nature of the universe." The company has developed the Grok chatbot and partnered with X to power the conversational AI on the platform.

Musk faces competition in the growing AI gaming market. Microsoft's Xbox is working with Inworld AI on multiyear projects, Nvidia is pushing its ACE for Games system to create AI-driven digital humans, and Roblox has rolled out its generative AI tool, Roblox Cube, to assist developers in creating games.

Julian Togelius, co-founder and research director at modl.ai and associate professor at New York University, said that using generative AI in game development is a game-changer, but also requires human oversight.

"A hybrid model that combines human judgment with assisted automation can optimize outcomes and mitigate risks," Togelius said.

The move into game development comes as xAI expands its footprint, including a federal contract with the U.S. General Services Administration to provide artificial intelligence services to government agencies.

The global video game market is projected to surpass $600 billion by 2030, with AI increasingly used in story design, character behavior, and world-building, according to Grand View Research.