xAI Cuts Data Annotation Team Amid Chatbot Development
- tech360.tv
- Sep 15, 2025
- 1 min read
Elon Musk's xAI has laid off at least 500 workers from its data annotation team, which contributes to the development of the company's Grok chatbot. Employees received notification by email on Friday night that xAI planned to downsize the team, a detail reported by Business Insider.
The affected employees were generalist AI tutors, who teach Grok to understand the world by contextualising and categorising raw data. This team was reportedly xAI's largest.
Workers will receive payment through either the end of their contract or Nov. 30. However, their access to company systems ended on the same day as the layoff notice.
xAI stated in a post on X that it is hiring for roles across various domains. The organisation also plans to increase its specialist AI tutor team by "10X."
Chief Financial Officer Mike Liberatore departed xAI around late July after only a few months on the job, a development reported by the Wall Street Journal this month, citing people familiar with the matter.
Mr. Musk launched xAI in 2023. The company aims to challenge Big Tech's efforts in artificial intelligence, with Mr. Musk previously accusing industry leaders of excessive censorship and lax safety standards.
xAI has laid off at least 500 data annotators from its team.
The affected team was responsible for developing the Grok chatbot and was reportedly xAI's largest.
Workers will be paid through their contract end or Nov. 30, with system access immediately terminated.
Source: REUTERS
