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Investing.com -- Elon Musk’s artificial intelligence (AI) startup, xAI, has acquired Hotshot.co, a New York-based startup that specializes in creating AI-generated videos. The acquisition was announced by Hotshot on Monday, but the purchase price has not been disclosed.
Hotshot, established in 2017, has backing from several investors including Lachy Groom, an angel investor, Alexis Ohanian, a cofounder of Reddit, and Day One Ventures. Over the past two years, the company has trained three video foundation models: Hotshot-XL, Hotshot Act One, and Hotshot.
In a statement released by Hotshot, they expressed enthusiasm about the acquisition and the future of their video models. They said, "We see these video models as an early look into the future of learning, entertainment, communication and more. We’re excited to continue scaling these efforts on the largest cluster in the world, Colossus, as a part of xAI."
As a result of the acquisition, Hotshot announced on March 14, 2025, that they will be discontinuing new video creation. However, existing users of the platform, referred to as "hotshotters", will have until March 30, 2025, to download any videos they have previously created on the platform.
Hotshot also expressed gratitude for the support they have received over the years and shared their anticipation for the future under xAI. This acquisition marks the latest step in Elon Musk’s efforts to advance in the AI industry.
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