Svmuu News: Sources familiar with the matter reveal that xAI is increasing its investment in video and image generation tools in an effort to establish a competitive edge in multimodal capabilities. In contrast, OpenAI and Anthropic have taken a more conservative approach to visual generation, leaving room for xAI to make inroads. It is reported that xAI launched an upgraded video model last week, underscoring its continued progress in visual generation, even as it seeks external partnerships in areas such as encoding to counter its competitors. Sources indicate that xAI is working to boost user engagement and virality for its AI video tools, viewing them as a key driver for product competition in the next phase, while SpaceX has also publicly endorsed and highlighted the popularity of its AI video tools. (The Information)