xAI acquires San Francisco-based video startup Hotshot

Elon Musk's AI company, xAI, has acquired Hotshot, a startup focused on AI video generation tools. Hotshot's CEO announced the acquisition on X, highlighting their development of three video models over the past two years. Hotshot, based in San Francisco, initially worked on photo tools before shifting to text-to-video models. The company attracted investments from notable venture capitalists before the acquisition. Hotshot has begun phasing out its video creation services, with existing customers given until March 30 to download their videos. It is unclear if Hotshot's staff will join xAI.