xAI's biggest contribution to the space seems to have been their x-rated image/video model. Hard to see what xAI has to offer against Gemini, Claud, ChatGPT.
To be fair I think there's a good usecase there. Someone's gonna do it. People will want it.
American financial institutions are too prudish for it but money is money. And personally I think there's nothing morally wrong with it (of course within normal restrictions like 18+, consent of portrayed parties etc)
xAI is getting flak in Europe because they don't obey consent and age, not because it's porn.
Personally I prefer porn made by real people right now, not just because of quality but because they have character. But I can imagine experiences becoming more interactive that way and that would be nice.