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Elon Musk's xAI Reportedly Lays Off 500 Workers From Data Annotation Team As Startup Pivots To Specialist AI Tutors For Grok Expansion

Market Impact

Ananya Gairola

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September 13, 2025

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Benzinga

Elon Musk's xAI has laid off about 500 data annotators in a major restructuring, shifting focus to specialist AI tutors to accelerate Grok's development despite recently securing $10 billion in new funding.

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