"It was not built right first time around, so is being rebuilt from the foundations up. The comment came as reporting from the Financial Times and CNBC confirmed a wave of departures among xAI's senior engineering staff, with Tesla and SpaceX executives reportedly sent in to audit teams and identify underperformers."
"The immediate catalyst for this latest round of disruption appears to be Grok's performance on coding tasks. Musk said at a conference this week that Grok is currently behind in coding, a candid admission given that AI-assisted software development has emerged as perhaps the most commercially valuable near-term application of large language models."
"The cumulative loss, described by insiders as a combination of burnout and Musk's management style, has left morale at the company in poor shape, according to multiple people familiar with the situation."
xAI, founded by Elon Musk in March 2023 with 12 co-founders, has experienced significant turmoil. Ten of the original founders have departed, and the company is cutting staff. Grok, xAI's flagship chatbot, lags behind competitors in coding tasks, which Musk acknowledged publicly. Recent departures include prominent researchers and engineers, with insiders citing burnout and Musk's management style as contributing factors. Following a $1.25 trillion merger between xAI and SpaceX, Musk announced the company must be rebuilt from its foundations for the second time, with Tesla and SpaceX executives auditing teams to identify underperformers.
Read at TNW | Tech
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