Elon Musk’s xAI is rolling out new video and image tools after SpaceX acquired xAI around February 2026, giving the AI company access to significant computational infrastructure. The latest release, Grok Imagine Video 1.5, launched in early June 2026, generating videos from images at resolutions up to 720p with synchronized audio. Image generation runs between $0.002 and $0.02 per image, with per-second video generation falling in a similar range. xAI released its Aurora text-to-image model in late 2024, followed by the acquisition of Hotshot, an AI video startup, on March 17, 2025. Developers can process text, generate an image, turn that image into a video, and add synchronized audio through the same API. OpenAI has reportedly been reducing its video offerings, while Google’s Veo remains a formidable competitor. The 720p cap on video resolution leaves room for competitors to differentiate on quality.