UPDATE: Elon Musk says Grok will be able to use Imagine as a tool in agentic mode for image and video generation.

What happened

Elon Musk announced that Grok, his AI chatbot, will be able to use the Imagine tool in agentic mode to create images and videos.

Confirmed

Global impact / market context

Adding image and video generation expands Grok’s capabilities, potentially drawing more users to X, boosting advertising and subscription revenue, and positioning xAI against rivals like OpenAI and Google.

Analyst inference

The AI field is seeing rapid growth, with companies racing to add image and video generation features to their chatbots, which can attract more users and increase platform engagement.

Analyst inference

What to watch

1. The timeline for rolling out the agentic Imagine feature, as delays could affect user adoption and competitive positioning. Analyst inference
2. How X integrates Grok’s new visual tools into its platform, which will determine the impact on user engagement and time spent on the site. Analyst inference
3. Responses from competing AI providers, especially any new visual generation offerings that could influence market share. Analyst inference

Evidence

• x.com