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Elon Musk’s SpaceXAI has been bleeding staff since its merger

Elon Musk’s SpaceXAI has been bleeding staff since its merger

Posted on May 15, 2026October 10, 2026 By Muhammad Safdar No Comments on Elon Musk’s SpaceXAI has been bleeding staff since its merger
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Elon Musk’s newly rebranded SpaceXAI is reportedly losing top talent, with more than 50 researchers and engineers departing since February, according to The Information. The exits include key leaders across coding, world models, and Grok voice. 

Rivals like Meta and Thinking Machine Labs are reportedly scooping up former staff, with the company’s core pre-training team dwindling to just a handful of people. Since February, at least 11 xAI employees have defected to Meta, according to The Information’s report. At least seven have left to join Mira Murati’s Thinking Machine Labs. TechCrunch has previously reported on 11 of the xAI departures announced directly after the merger, including two co-founders.

SpaceX acquired xAI — two companies owned by Musk — in February and has since installed new leadership at the company. Musk renamed the combined company SpaceXAI earlier this month.

The pre-training departures, which followed the exit of team lead Juntang Zhuang, have particularly concerned employees and people close to SpaceXAI, per The Information. Pre-training is the first step to building new AI models, and many have questioned whether the company is still committed to developing leading models. 

The report also found that Musk’s culture of extreme work led some staff to leave — something Musk employees across his companies, including Tesla, have complained about. A source who spoke to The Information said Musk set unrealistic deadlines for training models, which led to cutting corners on Grok. 

Of course, several of the exits could have been driven by a desire to cash out.

SpaceX regularly offers tenders so employees can sell vested shares privately. Others might simply feel confident that their equity is close to liquidity given the company’s blockbuster IPO expectations. Once employees see the financial upside light at the end of the tunnel, they’re less likely to work at a company that puts undue pressure on them and may not be building the leading models they want to work on.

TechCrunch has reached out to SpaceX for comment.

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More on elon musk spacexai has been bleeding

Stay tuned for updates on elon musk spacexai has been bleeding as the story develops. Related: Musk v. Altman closing arguments.

Frequently Asked Questions

How many people have left SpaceXAI since the merger?

More than 50 researchers and engineers have departed since February, according to The Information, including key leaders across coding, world models, and Grok voice.

Where are the departing SpaceXAI employees going?

Rivals like Meta and Thinking Machine Labs are scooping up former staff. At least 11 xAI employees defected to Meta, and at least seven left to join Mira Murati's Thinking Machine Labs.

What is SpaceXAI and how was it formed?

SpaceX acquired xAI in February, both companies owned by Elon Musk, and Musk renamed the combined company SpaceXAI earlier this month.

Why are employees reportedly leaving SpaceXAI?

The Information found Musk's culture of extreme work and unrealistic model-training deadlines led some staff to leave. Others may be cashing out, since SpaceX regularly offers tenders letting employees sell vested shares privately as IPO expectations grow.

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