Elon Musk’s Startup xAI Is Laying Off 500 Employees Who Worked on Training Its Grok Chatbot: ‘Strategic Pivot’

Elon Musk’s startup, xAI, just cut down its biggest team by a third.

The AI startup laid off at least 500 workers on its 1,500-person data annotation team on Friday night, reports Business Insider. The move means the team, which leads AI training, is down to about 1,000 workers. The group is tasked with refining xAI’s chatbot, Grok, by teaching it how to contextualize data.

Related: Elon Musk’s Companies, X and xAI, Sue Apple and OpenAI for ‘Anticompetitive Scheme’

The company asked the team’s employees to complete a series of tests on Thursday night that would help classify them based on their strengths and interests. The tests covered areas like coding,

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