News Summary

Elon Musk’s AI company, xAI, has introduced image generation capabilities to its API, allowing users to generate images at a cost of $0.07 per image. This API, which currently offers the ‘grok-2-image-1212’ model, can create up to 10 images per request and is limited to 5 requests per second. Comparatively, AI startup Black Forest Labs, xAI’s partner in launching image generation on Musk’s social network X, charges approximately $0.05 per image. Another competitor, Ideogram, charges $0.08 per image. The API does not yet support adjustments in image quality, size, or style. As xAI seeks additional revenue sources, the company is reportedly discussing a $10 billion funding round that could elevate its valuation to $75 billion. In line with its broader ambitions, xAI has acquired a generative AI video startup and is expanding its Memphis-based data center.