Even with more than 5,000 employees and its chatbot Grok gaining users, xAI is struggling to meet business demand and keep up with rivals like OpenAI.
To bounce back, it has brought in new hires and is teaming up with Tesla on "Macrohard," a project aiming to automate software tasks using AI.
SpaceX and Tesla employees have been brought into xAI to conduct employee evaluations and dismiss underperforming staff.