Staff complain that xAI is flailing because of constant upheaval

March 15, 2026
Ai
Staff complain that xAI is flailing because of constant upheaval

Here's something that might surprise you — Elon Musk’s xAI is reportedly struggling amid constant upheaval. According to Stephen Morris and Cristina Criddle of the Financial Times, Musk’s frustration over the startup’s poor coding performance has led to new job cuts, even removing several cofounders. To fix things, Musk’s bringing in 'fixers' from SpaceX and Tesla, trying to steady the ship. Now, here’s where it gets interesting — xAI is only two years old, but it’s already feeling the heat from rivals like Anthropic and OpenAI, whose tools are shaking up the industry. Musk’s also merging SpaceX with xAI in a $1.25 billion deal, aiming for a huge stock market debut by June. He’s got big dreams — launching AI data centers into space, building factories on the Moon, and colonizing Mars. But, as Stephen Morris and Cristina Criddle highlight, the constant chaos isn’t helping the team find their footing. So what does this mean? Keep an eye on whether xAI can stabilize or if the upheaval will keep holding it back.

Elon Musk has ordered another round of job cuts at xAI after growing frustrated with the poor performance of its coding product, forcing out several more cofounders and parachuting in “fixers” from SpaceX and Tesla to audit the startup.

The latest overhaul of the 2-year-old startup follows the success of Anthropic and OpenAI, whose AI coding tools have shaken up the software industry, multiple people familiar with the decisions said.

Musk has dialled up the pressure after merging SpaceX with xAI in a $1.25 billion deal, as he attempts to meet a June deadline for what could be the biggest stock market listing in history. The world’s richest man has said his goals are to launch AI data centers into space, build factories on the Moon, and colonize Mars.

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Elon Musk has ordered another round of job cuts at xAI after growing frustrated with the poor performance of its coding product, forcing out several more cofounders and parachuting in “fixers” from SpaceX and Tesla to audit the startup.

The latest overhaul of the 2-year-old startup follows the success of Anthropic and OpenAI, whose AI coding tools have shaken up the software industry, multiple people familiar with the decisions said.

Musk has dialled up the pressure after merging SpaceX with xAI in a $1.25 billion deal, as he attempts to meet a June deadline for what could be the biggest stock market listing in history. The world’s richest man has said his goals are to launch AI data centers into space, build factories on the Moon, and colonize Mars.

Read full article

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