Musk's xAI Lays Off 500 Data Annotators, Shifts Focus to AI Specialists

Sep 13, 2025
Business Insider
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Summary

Elon Musk's AI company xAI lays off around 500 data annotators as it pivots towards employing specialized AI tutors, conducting assessments to identify workers' strengths for future roles.

Key Points

  • Elon Musk's xAI lays off about 500 workers from its data annotation team
  • The layoffs follow a strategic shift to prioritize specialist AI tutors over generalist roles
  • XAI conducts tests to assess workers' strengths and determine future roles

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