Elon Musk, CEO of xAI, has initiated a major audit and overhaul of his AI company, bringing in a “fixer” from Tesla and SpaceX to address structural problems. Musk acknowledged that “xAI was not built right the first time around,” prompting a foundational rebuild of the company.
Revisiting Hiring Records
As part of the restructuring, Musk and Baris Akis are reviewing previously rejected job applications. Musk emphasized on X (formerly Twitter) that “candidates should always be treated with great respect,” signaling an effort to correct past oversights and potentially reach out to promising talent that had been overlooked.
Leadership Changes and Challenges
The overhaul follows a wave of co-founder departures, including Zihang Dai and Guodong Zhang, leaving only two original co-founders—Manuel Kroiss and Ross Nordeen—to work alongside Musk. The company was acquired by SpaceX just over a month ago in an all-equity deal that valued xAI at $250 billion, making the current leadership and structural decisions critical for the company’s future.
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Employee Numbers and Talent Gap
According to LinkedIn data, xAI currently employs just over 5,000 people, compared with over 7,500 at OpenAI and more than 4,700 at Anthropic. Analysts highlight that this talent gap is particularly important as SpaceX prepares for a record-breaking IPO this year, and having a strong AI team is seen as a strategic advantage.
Looking Ahead
Musk’s move signals a decisive phase for xAI, focusing on fixing foundational flaws, retaining and attracting top talent, and integrating the company’s operations under SpaceX oversight. Experts suggest that how effectively Musk addresses structural and personnel challenges will shape xAI’s competitiveness in the rapidly evolving AI sector.
