xAI reportedly lays off 500 workers from data annotation team

7 months ago 66

In Brief

Posted:

8:50 AM PDT · September 13, 2025

The Grok logo appears connected  a telephone  and the xAI logo is displayed connected  a laptop.Image Credits:Klaudia Radecka/NurPhoto / Getty Images
  • Anthony Ha

Elon Musk’s AI startup xAI laid disconnected 500 squad members connected Friday night, according to internal messages viewed by Business Insider.

These emails reportedly denote an contiguous “strategic pivot,” with the institution deciding to  “accelerate the enlargement and prioritization of our specializer AI tutors, portion scaling backmost our absorption connected wide AI tutor roles.”

“As portion of this displacement successful focus, we nary longer request astir generalist AI tutor positions and your employment with xAI volition conclude,” xAI reportedly wrote.

According to Business Insider, these cuts correspond astir one-third of xAI’s 1,500-person information annotation squad — the squad that works to statement and hole information utilized to bid xAI’s chatbot Grok.

When contacted for confirmation, xAI pointed to a connection connected X (the Musk-owned societal web that it acquired earlier this year) declaring that the institution “will instantly surge our Specialist AI tutor squad by 10x.”

“We are hiring crossed domains similar STEM, finance, medicine, safety, and galore more,” the institution said.

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