xAI Introduces Image Generation API

Elon Musk’s AI company, xAI, has launched an API for image generation. This has put xAI in direct competition with other AI image platforms. The demand for AI-generated visuals is rising and xAI has joined the list of image-generation tools.

The new API, introduced on March 19, 2025, allows users to create images from text prompts. xAI is pushing to expand its AI capabilities, and this latest feature highlights its growing ambitions.

How xAI’s Image API Works

The API currently supports a single model, “grok-2-image-1212.” Users submit a text prompt and receive AI-generated images, just like any other tool. xAI isn’t free and the pricing is competitive. It charges $0.07 per image. In comparison, Black Forest Labs charges $0.05 per image, while Ideogram’s higher-end pricing reaches $0.08 per image.

Here’s what xAI offers you: 

• Generate up to 10 images per request.
• Limited to five requests per second.
• Images come in JPG format.

Current Limitations and Future Updates

Right now, the API has some restrictions. These limitations may put xAI behind platforms that offer more customization. However, updates could roll out soon, adding more flexibility. But for now:

• Users can’t adjust image quality, size, or style yet.
• A “chat model” reviews prompts before processing them.

xAI’s Bigger Vision: Scaling AI Rapidly

xAI is searching for new revenue sources. Since launching its API in October 2024, the company has worked on expanding its AI models, including Grok 3.

To fuel this growth, xAI is reportedly seeking $10 billion in funding. If successful, this round could push its valuation to $75 billion. This signals xAI’s intention to compete with AI giants like OpenAI and Google DeepMind.

Expanding Through Acquisitions and Infrastructure

Beyond images, xAI is making moving strategically:

• Acquiring a generative AI video startup. This suggests xAI may enter AI-powered video creation, competing with Runway and Pika Labs.
• Expanding its Memphis-based data center. A larger facility boosts AI training and performance.

How xAI Compares to Competitors