Elon Musk reveals xAI's new structure and says it meant 'parting ways' with some staff

• Elon Musk revealed xAI's new structure during an all-hands meeting.
• The meeting took place shortly after two cofounders announced their departures.
• Musk said the reorg involved "parting ways" with some people.

Elon Musk revealed xAI's new company structure during the company's all-hands meeting on Tuesday night.

In the presentation, which was later posted on X, Musk and other leaders at the company broke down the leads behind xAI's four main products: the main Grok product and Grok Voice; Grok Code; Grok Imagine; and the company's Macrohard project, which is working on automating some white-collar work.

"XAI was reorganized a few days ago to improve speed of execution. As a company grows, especially as quickly as xAI, the structure must evolve just like any living organism," Musk wrote on X. "This unfortunately required parting ways with some people. We wish them well in future endeavors."

Musk outlined the changes shortly after xAI cofounders Tony Wu and Jimmy Ba announced they had left the company. Over the last few days, several other staffers posted on social media that they had also exited.

Over the past few months, Musk expressed displeasure with the progress on Grok Imagine and Macrohard, people with knowledge of the issue told Business Insider.

XAI recently cut a handful of workers who were involved with Macrohard, insiders said.

Some additional staffers had their roles eliminated a few weeks ago, around the same time that Musk reorganized some teams between Wu and xAI cofounder Guodong Zhang, people with knowledge of the move said.

A spokesperson for xAI did not immediately respond to a request for comment.

The restructuring announcement comes a little over a week after SpaceX acquired xAI. The combined company is gearing up for an initial public offering this year, according to an internal Q&A on the acquisition shared with xAI staff last week.

Watch the all-hands meeting below:

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