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Musk Reorganizes xAI, Co-founders to Depart

Elon Musk said xAI is undergoing a reorganization following its merger with SpaceX, a move he described as necessary to manage the artificial-intelligence startup’s rapid growth.

Speaking at a companywide meeting this week, Musk said the restructuring would include employee departures, adding that some staff were “better suited to the early stages” of xAI’s development, according to a post on X.

Co-founders Jimmy Ba and Yuhuai (Tony) Wu confirmed in posts on X that they are leaving the company.

Earlier this month, SpaceX acquired xAI in a deal that valued the startup at $250 billion and the combined entity at $1.25 trillion. Musk has told associates he intends to take SpaceX public by July, according to The Wall Street Journal. Musk is the founder and CEO of both companies.

Musk outlined a new structure dividing xAI into four teams focused on its Grok chatbot, a coding model, an image-generation model and a project called Macrohard aimed at simulating software products. He said xAI has 600 million monthly users on X and that its Imagine video tool is generating nearly 50 million videos a day.

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