Elon Musk’s artificial intelligence company, xAI, has expanded its API capabilities by adding image generation features. The new offering, currently limited to a single model named “grok-2-image-1212,” allows users to generate up to 10 images per request based on a given caption. The images are delivered in JPG format, with pricing set at $0.07 per image and a rate limit of five requests per second.

Competitive Pricing and Features

xAI’s pricing positions it competitively within the AI image generation market. For comparison, Black Forest Labs, an AI startup that partnered with xAI last year to launch image generation on Musk’s social network X, charges approximately $0.05 per image. Meanwhile, Ideogram, another popular image model provider, charges up to $0.08 per image on the higher end.

However, xAI’s current API has some limitations. According to its documentation, users cannot yet adjust the quality, size, or style of the generated images. Additionally, prompts submitted to the API are subject to revision by a “chat model,” which may refine or alter the input before generating the final output.

Strategic Moves and Revenue Goals

xAI launched its API in October 2024 and appears to be actively seeking revenue streams to support its ambitious goals. The company is reportedly in talks with investors for a potential $10 billion funding round, which could elevate its valuation to $75 billion. This funding would likely support the training and development of its flagship models, including Grok 3, as well as other advanced AI initiatives.

In a move that hints at its broader ambitions, xAI recently acquired a generative AI video startup. The company is also expanding its Memphis-based data center, which is critical for training and running its AI models. These developments suggest that xAI is positioning itself as a major player in the generative AI space, with plans to expand beyond text and image generation into more complex domains like video.

Future Prospects

The addition of image generation capabilities marks a significant step for xAI as it diversifies its offerings and explores new revenue opportunities. While the current API is limited in functionality, the company’s strategic investments and partnerships indicate a commitment to rapid innovation and expansion.

As xAI continues to grow, its ability to compete with established players in the AI space will depend on its capacity to deliver high-quality, customizable solutions that meet the evolving needs of developers and businesses.