Xai

Technology • Technology • Palo Alto, California, United States • Website

xAI is an American artificial intelligence company founded by Elon Musk in March 2023. Its core mission is to advance human understanding of the universe through cutting-edge AI technologies. The company develops advanced AI models and tools, with its flagship product being Grok, a generative AI chatbot integrated with the social media platform X, aiming to provide truthful and engaging interactions.

Layoff History

500 employees (33.3%)

Sep 13, 2025

Reason

xAI underwent a strategic restructuring, laying off approximately 500 generalist AI tutors from its data annotation team. This move is a pivot to accelerate the expansion and prioritization of specialist AI tutors with domain-specific expertise (e.g., STEM, coding, finance, law, media, Grok personality experts) to enhance the Grok chatbot's performance and adaptability. The company aims to increase its specialist AI tutor team tenfold, reflecting a broader industry trend towards niche applications and a reallocation of resources towards higher strategic priority areas, reducing dependence on manual data annotation due to advancements in AI automation and model training efficiency.

Affected Departments

Data Annotation TeamGeneralist AI Tutors

Source: Musk's XAI Just Laid Off Hundreds of Workers Tasked With Training Grok - Business Insider View Source →

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