Job Cuts at xAI#
Elon Musk has announced more job cuts at his artificial intelligence company, xAI. This decision follows the departure of additional co-founders as Musk expressed dissatisfaction with the performance of the startup's coding division, according to a report from the Financial Times.
Management Overhaul#
Last month, Musk restructured the management team at xAI in preparation for a planned initial public offering (IPO). This IPO is expected to be one of the largest in history. The management changes were implemented after Musk merged xAI with his rocket company, SpaceX.
Audits and Departures#
To improve performance, Musk brought in staff from SpaceX and Tesla to conduct audits at xAI. These audits led to the termination of several employees whose work was deemed unsatisfactory. Among those leaving is co-founder Guodong Zhang, who led the Imagine team at xAI. He announced his departure after Musk blamed him for issues with the coding product and reassigned his responsibilities. Zhang confirmed his exit on social media.
Another co-founder, Zihang Dai, also left xAI earlier this week. With these departures, xAI now has only two of its original twelve co-founders remaining since its establishment in March 2023.