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SpaceX’s newly combined artificial intelligence unit, known as SpaceXAI, is witnessing a wave of employee exits following its recent merger with xAI. The company, linked to Elon Musk, has reportedly lost more than 50 researchers and engineers since February, according to reports.
SpaceX’s newly combined artificial intelligence unit, known as SpaceXAI, is witnessing a wave of employee exits following its recent merger with xAI. The company, linked to Elon Musk, has reportedly lost more than 50 researchers and engineers since February, according to reports.
The development comes at a time when competition for AI talent is increasing across the industry, with several rival companies hiring from SpaceXAI.
Reports suggest that the exits include key figures working on coding, world models and voice technologies linked to Grok, the company’s AI system.
Several employees have joined competitors, including Meta and Thinking Machines Lab, a firm founded by former OpenAI executive Mira Murati. At least 11 employees are said to have joined Meta, while seven have moved to Thinking Machines Lab.
Earlier reports had also indicated that multiple employees, including two co-founders, left soon after the merger.
One of the main concerns is the shrinking size of SpaceXAI’s pre-training team. This team is responsible for building the initial stages of AI models, making it a critical part of the development process. The exit of team lead Juntang Zhuang and several other members has reduced the team to a small group, raising questions about the company’s ability to build new large-scale AI models.
Experts note that pre-training is a foundational step in AI development, and any disruption at this stage can affect long-term progress.
Reports suggest that multiple factors may have contributed to the exits. Some employees have pointed to a demanding work culture, with tight deadlines and high expectations. Similar concerns have been raised by workers at other companies led by Musk, including Tesla. There are also indications that some employees chose to leave for financial reasons. SpaceX is known to offer share sale opportunities, allowing staff to monetise their equity. With expectations of a future public listing, some employees may have opted to exit after securing financial gains.
The movement of employees highlights the increasing competition for skilled AI professionals. Companies such as Meta and newer AI startups are actively hiring engineers and researchers to strengthen their capabilities. This competition is shaping the industry, as firms try to attract talent with better working conditions, research opportunities and long-term incentives.
The recent exits raise questions about SpaceXAI’s future direction in artificial intelligence. While the merger was expected to strengthen its capabilities, the loss of key talent could affect its ability to compete with other AI companies. At the same time, the company has introduced new leadership and may look to rebuild its teams in the coming months.
The situation at SpaceXAI reflects broader changes in the AI industry, where talent movement plays a key role in shaping innovation.
As companies continue to invest in artificial intelligence, retaining skilled employees is becoming as important as developing new technology. The coming months will show whether SpaceXAI can stabilise its workforce and continue its AI development plans.