Elon Musk's xAI has launched an API that enables users to generate images from text prompts. Currently, the platform offers one model, 'grok-2-image-1212,' which can create up to 10 images per request at a cost of $0.07 each. This move positions xAI against competitors like Black Forest Labs and Ideogram, which have slightly different pricing models. The API currently lacks features for adjusting image quality or style, as prompts are modified by a chat model. xAI is also pursuing significant funding to enhance its offerings and expand its data center capabilities.