Elon Musk’s AI startup Xai laid off 500 team members on Friday night, according to internal reports seen by Business Insider .
These emails reportedly announce an immediate “strategic pivot,” with the company deciding to “accelerate the expansion and prioritization of our specialist AI tutors while reducing our focus on general AI tutor roles.”
“As part of this shift in focus, we no longer require all-encompassing AI teaching positions, and your employment with XAI will conclude,” Ksai reported.
According to Business Insider, these cuts represent about one-third of XAI’s 1,500-person data annotation team—a team that works to label and prepare data used to train XAI’s chatbot Grok.
Contact confirmation, Xai said in an announcement about x (the Musk-owned social network it acquired earlier this year), announcing that the company will “immediately grow our team of expert AI trainers by 10x.”
“We are hiring in fields like STEM, Finance, Medicine, Security and more,” the company said.
