tech
March 13, 2026
Elon Musk says xAI must be 'rebuilt' as co-founder exodus continues, SpaceX IPO awaits
With xAI now in the hands of SpaceX, Elon Musk says he's rebuilding the artificial intelligence company following high-level departures.
TL;DR
- Elon Musk stated that xAI is being rebuilt from the ground up.
- Multiple xAI co-founders, including Zihang Dai, Guodong Zhang, Jimmy Ba, Tony Wu, and Toby Pohlen, have recently left the company.
- SpaceX, which merged with xAI, is valued at $1 trillion, while xAI was valued at $250 billion in the deal.
- Tesla has invested $2 billion into xAI and is integrating its Grok chatbot into vehicles and robotics development.
- xAI is facing government investigations in multiple international jurisdictions over its Grok chatbot's ability to generate non-consensual sexual images.
- The company is investing heavily in power and data infrastructure, particularly in the Memphis, Tennessee area.
- Musk apologized for declining or not interviewing promising candidates at xAI and stated that efforts are underway to re-engage them.
- SpaceX has hired two programmers from AI coding startup Cursor, and Musk has reportedly ordered job cuts at xAI following the success of rival AI coding tools.
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