Elon Musk’s AI Startup xAI Laid off 500 Team Members

Elon Musk’s AI Startup xAI Laid off 500 Team Members

Elon Musk’s AI startup xAI has reportedly laid off 500 team members from data annotation team on Friday night. This report was seen by Business Insider through internal email  sent to team members. The emails allegedly reveal an abrupt “strategic pivot,” with the company choosing to fast-track the growth and expansion, plus emphasis on specialized AI tutors for prioritization. In addition to that, the company cited that "scaling back our focus on general AI tutor roles" is also part of the plans. “In light of this new direction, the majority of general AI tutor roles are no longer required, and your employment with xAI will be coming to an end,” the company is said to have stated via the email sent to the team members. Affected employees were also told that they would be paid through either the end of their contract or November 30. One affected employee—who asked not to be named—said their access to the company's internal systems (including Slack and other internal tools) wa…