Would you believe it? Elon Musk is once again a part of another debate in the gaming industry after announcing that his company, xAI, plans to release a “great AI-generated game” before the end of 2026. Larian Studios’ Michael Douse responded to this announcement with a pointed critique.
Genuinely what this industry needs is not more mathematically produced, psychologically trained gameplay loops, rather more expressions of worlds that folks are engaged with, or want to engage with. AI has its place as a tool, but we have all the tools in the world and they… https://t.co/eL98XeLGW8
The publishing director for Baldur’s Gate 3 insists that true artistry in games can’t be replicated by algorithms. So, is AI really the future of gaming? Probably not. But that won’t stop people from trying.
Elon Musk’s xAI Promises a Fully AI-Generated Game by 2026
On October 7, 2025, Musk posted on X (formerly Twitter) that the xAI game studio will launch a “great” AI-generated title next year. The game, according to Musk, will use xAI’s Grok 4 model and Grok Imagine video generator to create virtual worlds in real time.
Grok will make a movie that is at least watchable before the end of next year and really good movies in 2027 https://t.co/5Fy42WRFLM
He also teased that Grok could soon make an “at least watchable” movie before the end of 2026. Earlier this year, Musk advertised positions for a “Video Games Tutor” to train Grok to make “engaging, fun, innovative” games. But for many in the industry, all this is really just a marketing tactic, rather than actual creativity.
Musk has a track record of overpromising, whether with Tesla’s “full self-driving” or humanoid robots. And the funny part is that this isn’t the first time we’ve seen an idea like this in the last year. Epic Games’ Tim Sweeney predicted earlier this year that AI-generated prompts could one day allow small teams to create worlds similar in scale to The Legend of Zelda: Breath of the Wild.
Baldur’s Gate 3’s Michael Douse Says It Doesn’t Solve the Problem
Shortly after Musk’s post went viral, Baldur’s Gate 3 publishing director Michael Douse responded sharply on X. He called out the misplaced faith in AI to solve what he calls “the real problems of the industry.” As someone who helped lead one of the best RPGs of the decade, he argues that what the industry truly needs isn’t “mathematically produced, psychologically trained gameplay loops.”
Like all growing markets, cloud, sub etc it will be a matter of time before there are roots. There will be roots. But not necessarily in the direction the industry as it currently stands needs to heal from the rug of retail being pulled beneath its feet. We need more human-human…
He went on to deliver what we can only say is one of the most eloquent critiques of AI’s role in art:
There simply is no resonance without mutual respect. There is no mutual respect without respect for craft. There is no craft without the human touch; the relative skill issue, or ‘the exhibition of otherness.’ To turn games into digital, emotionless content is to abandon all resonance… which is why people play!
These words are part of a bigger sentiment within the industry, and not just in gaming, but creative art in general. Many developers fear that the push for AI-generated games risks turning interactive art into soulless products. AI-generated games aren’t progress, but rather a symptom of chasing efficiency at the expense of artistry.
What do you think about Elon Musk’s promise of an AI game? Let us know in the comments!
