xAI launches image generation API for users

Elon Musk's AI company, xAI, has launched a new feature for its API that allows users to generate images. This new capability is part of its ongoing effort to expand services and find new revenue sources. Only one model, named "grok-2-image-1212," is currently available. Users can request images by providing a caption. The model can produce up to 10 images per request, but users are limited to 5 requests per second. Each image costs $0.07. In comparison, Black Forest Labs, an AI startup that xAI partnered with last year, charges about $0.05 per image. Another provider, Ideogram, has higher fees, around $0.08 for its images. At this time, users cannot customize the quality, size, or style of the images generated by the API. The prompts used in requests may also be modified by a “chat model.” xAI's API was launched in October 2024. The company is currently seeking significant revenue as it continues to develop key models like Grok 3. Reports suggest that xAI is in talks with investors about a funding round that could raise $10 billion, potentially increasing its valuation to $75 billion. Additionally, xAI is expanding its Memphis-based data center and recently acquired a generative AI video startup. This shows the company's ambition to grow and diversify its offerings.