xAI (language model company founded by Elon Musk) lays off staff
On September 9, 2025, Elon Musk’s xAI cut hundreds of workers responsible for training its Grok conversational model, marking a sharp move to reduce costs. The layoffs targeted data and machine learning training teams, even as the company continues to compete with OpenAI, Anthropic, and Google in the large language model race. Management has not clarified how the cuts will affect Grok’s upcoming updates or long-term development, raising questions about its ability to sustain product quality and innovation speed. No verified figures were released on the exact workforce share affected or direct financial impact.
Summary:
Elon Musk’s xAI laid off hundreds of Grok training staff, signaling cost pressures and uncertainty about future model improvements.