Elon Musk’s SpaceXAI has been bleeding staff since its merger

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May 18, 2026
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Elon Musk’s SpaceXAI has been bleeding staff since its merger
SpaceXAI, the AI arm recently formed by merging SpaceX and xAI, is experiencing significant staff departures following its February merger. More than 50 engineers and researchers have left, many joining competitors like Meta and Thinking Machines Lab. This wave of exits has raised concerns about leadership changes, work culture, and the company's future in AI development.

Elon Musk’s SpaceXAI has been bleeding staff since its merger

Elon Musk’s recently merged company, SpaceXAI, has seen a major exodus of talent following the integration of SpaceX and xAI in February. Reports indicate that over 50 researchers and engineers have left the organization, including leaders in coding, world models, and Grok voice technology.

Key Departures and Where Talent Is Going

  • Since the merger, at least 11 xAI team members have moved to Meta.
  • Another seven have joined Thinking Machines Lab, led by Mira Murati.
  • The pre-training team—a crucial component for building new AI models—has been reduced to just a few members.

Concerns Around Work Culture and Retention

Many of those who left blame a demanding work environment, citing Musk’s high-pressure culture and tight deadlines for AI training milestones. Some employees felt forced to cut corners, particularly on the Grok project, which has affected morale and retention.

Additionally, changes in leadership after the merger and the lure of new opportunities at rival firms have made retention difficult. Some of the departing staff may also be motivated by SpaceX’s frequent opportunities for selling vested shares, or the company’s anticipated IPO, making them less inclined to stay during a stressful period.

Uncertainty About SpaceXAI’s Future

The loss of pre-training team members, especially after the departure of their lead Juntang Zhuang, has led to questions about whether SpaceXAI will remain a leader in AI model development. Internal concerns have grown over the company’s direction and its ability to compete in the fast-moving AI market.

For the original article and more details, visit TechCrunch.

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