Musk cuts xAI: the company laid off more than 500 employees
Elon Musk has launched a personnel purge at his own AI company xAI. According to Business Insider, more than 500 people from the data-tagging team have received layoff letters.
Elon Musk has launched a personnel purge at his own AI company xAI. According to Business Insider, more than 500 people from the data-tagging team have received layoff letters.
Elon Musk has launched a personnel purge at his own AI company xAI. According to Business Insider, more than 500 people from the data-tagging team have received layoff letters.
This team was the largest in xAI — they were the ones who «taught» the Grok chatbot to understand the world by labeling, contextualizing, and categorizing raw data. Now, employees’ access to the systems has been cut off immediately after notification, although they were promised to pay their salaries until the end of their contracts or until November 30.
xAI declined to comment on the situation, but referred to a post in X: the company plans to increase its team of specialized AI tutors by 10 times. In other words, to replace the army of «universal» annotators with narrow-profile experts.
The dismissal coincided with another loss in top management: CFO Mike Liberatore left the company at the end of July, having worked there for only a few months.
Recall that Musk launched xAI in 2023 to challenge major players in the AI market, accusing them of «excessive censorship» and neglect of security.

