Elon Musk Restructures xAI After Co-Founders Exit, Focuses Now on Chatbots, Coding & AI Agents

xAI Bets on Ad-Free Grok, Video AI, and Agent Software as Musk Pushes Faster Execution After Internal Reset
Elon Musk Restructures xAI After Co-Founders Exit, Focuses Now on Chatbots, Coding & AI Agents
Written By:
Simran Mishra
Reviewed By:
Manisha Sharma
Published on

Elon Musk’s xAI has stepped into a new phase. The company has changed its internal structure following the resignation of its two co-founders, Jimmy Ba and Tony Wu, this week. Their exit reduced the original founding team from twelve to six members. The sudden change sparked talks about internal issues and leadership pressure.

Leadership Changes Raise Questions

Elon Musk announced that xAI had already reorganized its teams. He said the goal is to improve speed and execution. Rapid growth forced the company to restructure. Musk added that xAI continues to hire new talent.

Elon Musk xAI will now work through four main divisions:

The first division focuses on Grok AI. This includes the chatbot and voice products. Aman Madaan will lead this team. Grok AI remains the company’s main consumer product. Musk also confirmed that Grok AI will not show ads.

The second division handles Coding. Manuel Kroiss leads this team for building better AI systems and software tools. The group builds AI tools and improves technical systems. Musk wants this team to improve model performance quickly and stay ahead of the competition.

The third division is Imagine. This unit works on video generation. Guodong Zhang heads this team. Musk said that real-time video will consume most of the AI computing power in the future. The Imagine team aims to lead in this field.

The fourth division is Macrohard, led by Toby Pohlen. It works as an AI software company run by digital agents. The team plans on automating complex software tasks.

Funding, Regulation, and Future Plans

The restructuring comes soon after the SpaceX merger. The SpaceX merger gives xAI access to more resources and infrastructure. However, reports mention high spending on data centers and computing power. Some analysts see funding pressure as a risk.

Regulatory issues also remain a concern. Grok AI faced criticism over its image generation feature. Reports highlighted cases of harmful deepfake content. Authorities in the US, Europe, and Asia continue to watch closely.

Despite challenges, Musk sounded confident during a recent staff meeting. He described the future as exciting. He also shared updates on X Chat and X Money, which will launch for a limited number of external users soon.

Elon Musk xAI now stands at an important point. Leadership has changed, teams have new heads, and focus areas are clearer. The company aims to move faster and compete strongly in the global AI race.

Also Read: Dubai Loop: RTA and Elon Musk Partner for Underground Transit

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