Musk removes additional xAI co-founders amid struggles with AI development, according to FT

Elon Musk Initiates New Layoffs at xAI

Elon Musk has begun another round of staff reductions at his artificial intelligence company, xAI, according to a Financial Times report released Friday. Several co-founders have been dismissed as Musk expressed dissatisfaction with the performance of the startup’s coding team.

Leadership Changes Ahead of IPO

Last month, Musk reorganized xAI’s leadership in preparation for a major initial public offering, which could be among the largest in history. This restructuring followed the merger of xAI with SpaceX, his aerospace company.

SpaceX and Tesla Experts Brought In

Specialists from SpaceX were brought in to review xAI’s operations. These auditors terminated several employees whose contributions were found lacking, as reported by the Financial Times.

Co-Founders Depart Amid Restructuring

Guodong Zhang, who led xAI’s Imagine team, informed colleagues of his resignation after being held responsible for problems with the coding product and relieved of his main responsibilities by Musk. This information comes from sources familiar with the matter. Zhang confirmed his exit in a post on X on Thursday.

Another co-founder, Zihang Dai, also left xAI earlier this week. With these departures, only two of the original twelve co-founders who helped Musk launch xAI in March 2023 remain at the company.

SpaceX’s Response and Employee Concerns

SpaceX, which acquired xAI with the goal of building a $1.25 trillion enterprise, has not responded to Reuters’ request for comment.

According to the Financial Times, xAI employees have voiced concerns that the ongoing turmoil is hurting morale and hindering the company’s progress.

Staff Turnover and Recruitment Efforts

Researchers continue to leave xAI, citing exhaustion from Musk’s demanding work expectations or accepting more attractive offers from competitors.

Recruiters have started reaching out to candidates who were previously rejected, offering them positions with improved compensation packages, the report notes.

Musk Addresses Talent Shortage

“Many talented individuals were denied opportunities or interviews at xAI over the past few years. I apologize,” Musk stated in a post on X Friday, adding that he intends to reconnect with promising applicants.

New Hires from Cursor

xAI recently hired Andrew Milich and Jason Ginsberg from the code-generation startup Cursor.

Report by Juby Babu in Mexico City; Edited by Arun Koyyur