US EditionStaff Complain that xAI Is Flailing because of Constant Upheaval
Elon Musk replaced xAI leaders and recruited SpaceX and Tesla execs after coding tools lagged behind rivals, with only 2 of 12 co-founders remaining, Financial Times reported.
- On March 13, reporting said Elon Musk triggered job cuts at xAI after cofounders Zihang Dai and Guodong Zhang left, leaving just 2 of 12 original cofounders remaining.
- Because coding assistants are the main revenue source, xAI's lag in coding capability is a business problem amid SpaceX integration and pressure before its planned public offering.
- A month ago, SpaceX and Tesla executives evaluated xAI staff and let go of several employees, as Musk said an all‑hands on Wednesday focused on catching up by mid‑year.
- Recruiters are now reaching back to rejected applicants, and xAI hired Andrew Milich and Jason Ginsberg from Cursor, according to Musk's recent comments on X.
- He is pulling talent and projects from Tesla and SpaceX, with Musk saying xAI is being rebuilt "from the foundations up," acknowledging prior issues.
22 Articles
22 Articles
Staff complain that xAI is flailing because of constant upheaval
Elon Musk has ordered another round of job cuts at xAI after growing frustrated with the poor performance of its coding product, forcing out several more cofounders and parachuting in “fixers” from SpaceX and Tesla to audit the startup. The latest overhaul of the 2-year-old startup follows the success of Anthropic and OpenAI, whose AI coding tools have shaken up the software industry, multiple people familiar with the decisions said. Musk has di…
Elon Musk Orders Sweeping Layoffs as xAI Fails to Catch Up
In a Thursday tweet, Elon Musk said he was looking to rebuild his AI startup xAI “from the foundations up” after admitting it wasn’t “built right first time around.” The news comes amid a major exodus of cofounders, with a striking majority of them jumping ship over the last year. Amid the resulting leadership vacuum, the Financial Times reported on Friday that Musk had omitted a key detail in his latest missives on his social media platform. Ac…
The reorganization of the startup comes at a crucial moment for the global race to artificial intelligence, increasingly dominated by a few great actors
The billionaire reportedly hired technicians from his rocket company, SpaceX, and Tesla to audit xAI, which fired several employees whose work was deemed inadequate.
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