Back to News
investment

Elon Musk reveals xAI's new structure and says it meant 'parting ways' with some staff

Grace Kay
Loading...
3 min read
0 likes
⚡ Quantum Brief
Elon Musk announced a major restructuring of xAI during an all-hands meeting, citing the need to improve execution speed as the company scales rapidly. The reorganization included layoffs, with Musk acknowledging some employees were let go. The company’s four core products—Grok, Grok Voice, Grok Code, and Grok Imagine—were redefined, alongside the Macrohard project, which focuses on automating white-collar tasks. Leadership roles for each were clarified in the presentation. Two xAI cofounders, Tony Wu and Jimmy Ba, recently departed, followed by other staff exits. Musk had previously criticized progress on Grok Imagine and Macrohard, sources revealed. The restructuring follows SpaceX’s acquisition of xAI, with the combined entity preparing for an IPO later this year. The changes aim to streamline operations ahead of going public. xAI, founded just 30 months ago, has undergone rapid growth, with Musk framing the shakeup as necessary for future scalability and innovation. The company emphasized its ambitious trajectory despite the turnover.
AI Audio Summary
0:00 / 0:00
Click to play
Elon Musk reveals xAI's new structure and says it meant 'parting ways' with some staff

X.com 2026-02-11T22:40:17.530Z Share Copy link Email Facebook WhatsApp X LinkedIn Bluesky Threads lighning bolt icon An icon in the shape of a lightning bolt.

Impact Link Save Saved Read in app This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Elon Musk revealed xAI's new structure during an all-hands meeting. The meeting took place shortly after two cofounders announced their departures. Musk said the reorg involved "parting ways" with some people. Elon Musk revealed xAI's new company structure during the company's all-hands meeting on Tuesday night. In the presentation, which was later posted on X, Musk and other leaders at the company broke down the leads behind xAI's four main products: the main Grok product and Grok Voice; Grok Code; Grok Imagine; and the company's Macrohard project, which is working on automating some white-collar work. X.com "XAI was reorganized a few days ago to improve speed of execution. As a company grows, especially as quickly as xAI, the structure must evolve just like any living organism," Musk wrote on X. "This unfortunately required parting ways with some people. We wish them well in future endeavors." Musk outlined the changes shortly after xAI cofounders Tony Wu and Jimmy Ba announced they had left the company. Over the last few days, several other staffers posted on social media that they had also exited.Over the past few months, Musk expressed displeasure with the progress on Grok Imagine and Macrohard, people with knowledge of the issue told Business Insider. Every time Grace publishes a story, you’ll get an alert straight to your inbox! Stay connected to Grace and get more of their work as it publishes. Sign up By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider's Terms of Service and Privacy Policy. XAI recently cut a handful of workers who were involved with Macrohard, insiders said. Some additional staffers had their roles eliminated a few weeks ago, around the same time that Musk reorganized some teams between Wu and xAI cofounder Guodong Zhang, people with knowledge of the move said. A spokesperson for xAI did not immediately respond to a request for comment.The restructuring announcement comes a little over a week after SpaceX acquired xAI. The combined company is gearing up for an initial public offering this year, according to an internal Q&A on the acquisition shared with xAI staff last week. Watch the all-hands meeting below:Since xAI was formed just 30 months ago, the small and talented team has made remarkable progress.The future has never looked more exciting! pic.twitter.com/QZ73H2mpBj— xAI (@xai) February 11, 2026 Do you work for xAI or have a tip? Contact this reporter via email at gkay@businessinsider.com or Signal at 248-894-6012. Use a personal email address, a non-work device, and non-work WiFi; here's our guide to sharing information securely.

Read Original

Tags

quantum-algorithms

Source Information

Source: Business Insider

Discussion

0 professional contributions

Sign in to join this professional discussion.

Be the first to add a constructive contribution.