Elon Musk’s xAI sacks hundreds of workers from Grok training team

Elon Musk’s xAI has dismissed around hundreds of data annotators from the team that is tasked with training Grok AI.

According to a Business Insider report, around 500 workers have been laid off in a major overhaul as the company is planning to make a strategic shift to prefer AI tutors over generalist roles.

In an email sent to the employees informing about the downsizing of its generalist AI team, the company emphasized on hiring special AI tutors who will enhance productivity across all the domains.

The email reads, “After a thorough review of our Human Data efforts, we've decided to accelerate the expansion and prioritization of our specialist AI tutors, while scaling back our focus on general AI tutor roles.”

“This strategic pivot will take effect immediately. As part of this shift in focus, we no longer need most generalist AI tutor positions and your employment with xAI will conclude," the statement continued.

Despite being laid off, the remunerations of workers will be paid either at the end of their contract or November 30. However, they no longer will be able to access the system after the termination.

Being the largest data annotation team of xAI, it played a significant role in developing and training Grok based on raw data.