xAI reportedly lays off 500 workers from data annotation team

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Elon Musk’s AI startup xAI laid off 500 crew members on Friday evening, in keeping with inner messages seen by Enterprise Insider.

These emails reportedly announce an instantaneous “strategic pivot,” with the corporate deciding to  “speed up the enlargement and prioritization of our specialist AI tutors, whereas scaling again our concentrate on common AI tutor roles.”

“As a part of this shift in focus, we not want most generalist AI tutor positions and your employment with xAI will conclude,” xAI reportedly wrote.

In line with Enterprise Insider, these cuts signify about one-third of xAI’s 1,500-person knowledge annotation crew — the crew that works to label and put together knowledge used to coach xAI’s chatbot Grok.

When contacted for affirmation, xAI pointed to a press release on X (the Musk-owned social community that it acquired earlier this 12 months) declaring that the corporate “will instantly surge our Specialist AI tutor crew by 10x.”

“We’re hiring throughout domains like STEM, finance, medication, security, and plenty of extra,” the corporate mentioned.

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