Elon Musk’s SpaceXAI, a newly rebranded entity, has reportedly been losing key personnel, with more than 50 researchers and engineers leaving since the merger in February, according to The Information. Key figures from coding, world models, and Grok voice are among the departures.
Departure Details
Meta and Thinking Machines Lab have been quick to recruit former SpaceXAI employees. The core pre-training team has seen a significant reduction, now comprising only a handful of members. At least 11 xAI employees have joined Meta, and seven have moved to Mira Murati’s Thinking Machines Lab. TechCrunch has previously highlighted 11 xAI departures, including two co-founders, soon after the merger.
Merger and Rebranding
SpaceX acquired xAI, both owned by Musk, in February. Following the merger, new leadership was introduced, and the company was renamed SpaceXAI earlier this month.
Impact on AI Development
The exodus of the pre-training team, notably after team lead Juntang Zhuang’s exit, has raised concerns internally and externally. Pre-training is critical for developing new AI models, and there are doubts about the company’s commitment to leading AI model development.
Reports suggest that Musk’s demanding work culture is a significant factor in the departures. Unrealistic deadlines for model training have reportedly led to corner-cutting on projects like Grok. This issue isn't unique to SpaceXAI, as similar complaints have been made by employees at other Musk-owned companies, including Tesla.
Financial Considerations
Some staff may have left SpaceXAI to cash out their vested shares, as SpaceX offers tenders for private share sales. With an anticipated blockbuster IPO, employees might see financial benefits on the horizon, making them less inclined to remain in a high-pressure environment that may not align with their career goals.
TechCrunch has reached out to SpaceX for comments but has yet to receive a response.
Source: https://techcrunch.com/2026/05/14/elon-musks-spacexai-has-been-bleeding-staff-since-its-merger/
