"Elon Musk said he was looking to rebuild his AI startup xAI "from the foundations up" after admitting it wasn't "built right first time around." The news comes amid a major exodus of cofounders, with a striking majority of them jumping ship over the last year. Amid the resulting leadership vacuum, he's ordered a round of sweeping layoffs at the company after becoming frustrated with a lack of progress on its AI coding software."
"Musk reportedly ordered higher-ups from Tesla and SpaceX, the latter of which xAI was folded into earlier this year, to conduct audits and weed out anybody deemed to be underperforming. The news comes just over a month after Musk announced he had "reorganized" xAI, admitting that it "unfortunately required parting ways with some people.""
"Coding, in particular, has become a major focus, with Musk poaching two senior employees from AI coding startup Cursor. According to reports, staffers have grown concerned that the training data of xAI's chatbot Grok was lacking, causing it to lag far behind Anthropic's popular Claude Code and OpenAI's Codex."
Elon Musk announced plans to rebuild xAI from its foundations after acknowledging it wasn't built correctly initially. The company is experiencing a major exodus of cofounders and faces a leadership vacuum. Musk has ordered sweeping layoffs and audits conducted by executives from Tesla and SpaceX, which recently merged with xAI. Staff members are experiencing burnout amid scrutiny of their performance. The pressure intensifies as SpaceX prepares for a public offering at a $1.25 trillion valuation. xAI's chatbot Grok significantly lags behind competitors in coding capabilities, prompting Musk to recruit senior employees from AI coding startup Cursor to address this critical weakness.
Read at Futurism
Unable to calculate read time
Collection
[
|
...
]