SpaceX CEO Elon Musk through the World Financial Discussion board in Davos, Switzerland, Jan. 22, 2026.
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SpaceX CEO Elon Musk on Wednesday introduced that the corporate’s xAI synthetic intelligence enterprise carried out a reorganization that “required parting methods with some individuals.”
The overhaul was carried out “to enhance pace of execution,” Musk stated in a publish on X. He didn’t say which staff might have been reduce on account of the restructuring or which staff might have resigned of their very own volition.
“We’re hiring aggressively,” Musk added.
Earlier this week, xAI co-founders Jimmy Ba and Tony Wu introduced their exits after a number of different founding members, together with Igor Babuschkin, Kyle Kosic, Christian Szegedy and Greg Yang, beforehand departed.
Final week, Musk introduced a record-setting, all-stock transaction wherein SpaceX, the aerospace and protection juggernaut, acquired xAI, which owns and operates social community X and is the developer of Grok, the embattled AI chatbot and picture generator.
The deal valued SpaceX at $1 trillion and xAI at $250 billion publish merger, in line with paperwork seen by CNBC. Musk beforehand used xAI to accumulate X, previously Twitter, in one other all-stock transaction introduced in March 2025.
The co-founder departures and the reorganization this week come as SpaceX prepares to go public someday this yr and whereas xAI faces regulatory probes in a number of jurisdictions throughout Europe, Asia and the U.S.
The probes are trying into whether or not xAI violated regional laws after Grok enabled mass-creation and syndication of non-consensual, express photographs, colloquially generally known as deepfake porn. The photographs had been primarily based on pictures of actual individuals, together with kids.
Musk launched xAI in 2023 alongside 11 different individuals in an effort to compete in opposition to OpenAI and Google. The corporate’s acknowledged objective was to “perceive the true nature of the universe,” in line with its web site on the time.
