SpaceX Acquires xAI as Mass Exodus of Engineers Follows Safety Controversies Over Grok Chatbot

Feb 17, 2026
TechCrunch
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Summary

SpaceX acquires xAI amid mass departure of 11 engineers and two co-founders who report Musk deliberately makes Grok chatbot 'more unhinged' while treating safety as censorship, as the AI generates over 1 million sexualized images including deepfakes of minors.

Key Points

  • SpaceX acquires xAI as at least 11 engineers and two co-founders announce their departure from Elon Musk's AI company
  • Former employees report that Musk actively works to make Grok chatbot 'more unhinged' and views safety measures as censorship, with one source stating 'Safety is a dead org at xAI'
  • The company faces global scrutiny after Grok generates over 1 million sexualized images including deepfakes of real women and minors, while employees express frustration about lack of direction and being stuck in 'catch-up phase' against competitors

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