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Musk Shakes Up xAI: More Co-Founders Out
13 Mar
Summary
- Elon Musk initiated another round of layoffs at xAI.
- Key co-founders have departed due to performance issues.
- The shake-up impacts morale and the startup's progress.

Elon Musk has again implemented job cuts at his artificial intelligence company, xAI, with additional co-founders departing. This action stems from Musk's dissatisfaction with the performance of the startup's coding division.
Recently, "fixers" from SpaceX and Tesla were brought in to assess xAI. This audit led to the dismissal of several employees whose work was deemed insufficient. Guodong Zhang, head of xAI's Imagine team, announced his departure, having been held responsible for coding product issues and relieved of his duties by Musk.
Another co-founder, Zihang Dai, reportedly left earlier this week. These exits mean only two of the original twelve co-founders who established xAI in March 2023 remain. The company's staff have expressed concerns that this constant upheaval is negatively impacting morale and hindering xAI's potential.
Researchers are also leaving due to extreme work demands or by accepting superior offers from rivals. In response to feedback, Musk acknowledged that promising candidates were previously declined and stated he would reach out to them. Additionally, xAI has onboarded new personnel from the code-generation startup Cursor.




