Musk's xAI Faces Fresh Turmoil as Job Cuts and Leadership Changes Rock Startup

Elon Musk has ordered another round of job cuts at his artificial intelligence (AI) startup xAI after growing frustrated with its poor performance. The latest overhaul comes as Musk seeks to meet a June deadline for what could be the biggest stock market listing in history, following the success of competitors like Anthropic and OpenAI.

Leadership Changes and External Audits

The job cuts are part of broader changes at xAI. Several cofounders have been forced out as Musk brings in "fixers" from SpaceX and Tesla to audit the startup's operations, a move that reflects his growing impatience with its progress.

Pressure Mounts Amid Competition

Musk has intensified pressure on xAI following the success of rivals like Anthropic and OpenAI. These companies have launched AI coding tools that are shaking up the software industry, according to multiple sources familiar with the decisions at xAI. Musk's ambitious goals include launching AI data centers into space, building factories on the Moon, and colonizing Mars.