Musk says xAI was reorganized, leading to some layoffs

SelfRugger · 2026-02-27T09:44:32+00:00

Elon Musk announced layoffs at xAI as part of a reorganization to enhance efficiency amid its expansion. This restructuring follows SpaceX's acquisition of xAI, aimed at building a $1.25 trillion company. Key co-founders have also resigned.

SelfRugger

2026-02-27 09:44:32

Abstract generation in progress

Musk says xAI was reorganized, leading to some layoffs

Reuters

Updated Thu, February 12, 2026 at 5:09 AM GMT+9 1 min read

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Feb 11 (Reuters) - Elon Musk said on Wednesday that xAI has laid ‌off some employees as part ‌of a broader reorganization aimed at improving efficiency as the artificial intelligence firm expands.

The latest changes at xAI come days after Musk’s SpaceX said it will purchase xAI ‌to create a $1.25 ⁠trillion company with plans to go public later this year ⁠to help finance the billionaire’s ambitions to put data centers in space.

“xAI was reorganized a few days ago to improve speed ‌of execution,” Musk said in a post on X, adding that it “unfortunately required parting ways with some people.”

On Tuesday, xAI co-founders Tony Wu and Jimmy Ba ‌said in social media posts that they had resigned from the artificial intelligence firm they ‌started with Musk less than three years ago, adding to an exodus from the company that has left it with ‌half of its 12 co-founders.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

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