US EditionElon Musk Admits xAI 'Wasn't Built Right' as only 2 Co-Founders Remain and Its Biggest AI Bet Stalls Out
Elon Musk is rebuilding xAI after nine of 11 co-founders left since 2024, aiming to leverage SpaceX’s orbital data centers for AI computing power.
- SpaceX CEO Elon Musk announced the startup is being "rebuilt from the foundations up," acknowledging it was "not built right first time around" and comparing the overhaul to a similar process at Tesla.
- Uncertainty has surrounded the three-year-old company following a mass exodus of talent, with nine of the original 11 co-founders departing since 2024, including two who left last week and two others last month.
- Seeking to refill vacant roles, the company poached employees Andrew Milich and Jason Ginsberg from Cursor, targeting a coding tools market projected to reach $22.2 billion by 2030 from $7.65 billion in 2025.
- Following earlier controversy where Grok allowed inappropriate image generation, The Verge published a feature documenting former employee criticism of company ethics and safety, though Musk has downplayed the exits as planned reorganization.
- Musk acquired the startup via SpaceX to build "orbital data centers," positioning the company to compete with Google and OpenAI in the rapidly developing AI market.
13 Articles
13 Articles
Elon Musk Just Made a Small Change That Speaks Volumes About His Desperation
As xAI reels from a mass exodus of cofounders, remains mired in numerous controversies, and loses ground to competitors like Anthropic, CEO Elon Musk has quietly made a small but significant change to how its flagship chatbot Grok functions. Starting last week, Grok stopped taking questions that free users asked in posts on Musk’s social media site, X, where the chatbot is integrated. Instead, it now states that “Ask Grok” is only available to P…
Elon Musk admits xAi is 'being rebuilt' after founding team resign - what went wrong?
Big changes are coming to xAI as Elon Musk has revealed his company is being "rebuilt from the foundations up."The world's richest man founded xAI in March 2023 with the aim of competing with similar firms such as Google and OpenAI in this rapidly developing market, but it has proven challenging.As ...
Elon Musk decided to rebuild the XAI practically from zero, allowing the company's initial structure was not the most suitable to compete with giants such as OpenAI or Anthropic. This restructuring arises...
Elon Musk Rebuilding xAI Amid High Employee Turnover, Founder Departures
Elon Musk’s artificial intelligence company xAI is being “rebuilt from the foundations up,” with major job cuts expected across the board. There has been growing frustration inside the company over its poor performance in coding tasks compared to Anthropic’s Claude Code and OpenAI’s Codex. Its chatbot Grok has also failed to catch on with users in the same way as ChatGPT and Google Gemini. The poor performance was reportedly raised by Musk at a …
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