Staff complain that xAI is flailing because of constant upheaval

9 hours ago

Elon Musk orders another round of job cuts at xAI due to poor performance of its coding product.
Several cofounders are forced out, and 'fixers' from SpaceX and Tesla are brought in to audit the startup.
The overhaul follows the success of rivals Anthropic and OpenAI, whose AI coding tools have disrupted the software industry.
Musk increases pressure after merging SpaceX with xAI in a $1.25 billion deal, aiming for a major stock market listing.
xAI's Grok chatbot and coding product have failed to gain traction with users or businesses.
Musk states xAI is being 'rebuilt from the foundations up,' similar to Tesla's past restructuring.
SpaceX and Tesla managers review xAI employees' work, leading to firings for inadequate performance.
Data quality for training models is a key issue, causing xAI's coding product to lag behind competitors.
Two more cofounders depart: Zihang Dai, who acknowledged xAI's coding lag, and Guodong Zhang, blamed for coding product issues.

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