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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Origianl Creator:
Stephen Morris and Cristina Criddle, Financial Times

Original Link: https://arstechnica.com/ai/2026/03/staff-complain-that-xai-is-flailing-because-of-constant-upheaval/
Originally Posted: Sat, 14 Mar 2026 07:14:53 +0000