xAI was exposed to layoffs

According to Business Insider, Elon Musk's artificial intelligence startup xAI has laid off at least 500 data labeling employees on Friday evening local time. These employees were mainly responsible for training the company's chatbot Grok. xAI notified the employees via email that the company plans to reduce the general AI Tutor positions and shift strategic focus towards "professional AI Tutors." "After a comprehensive review of our human data work, we have decided to accelerate the expansion and prioritization of professional AI Tutors, while reducing investment in general AI Tutor positions. This strategic shift will take effect immediately. As part of this adjustment, we will no longer require the majority of general AI Tutor positions, and your employment with xAI will be terminated." According to the email, the laid-off employees will receive compensation until the end of their contracts or until November 30, but will lose access to the company's systems on the day they receive the notice. The data labeling team is reportedly the largest department at xAI, with members playing a crucial role in the development of Grok by contextualizing and categorizing raw data to help the chatbot understand the world.