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SpaceXAI staff exodus continues after merger with Musk firm

Originally published on: May 15, 2026
▼ Summary

– Since February, over 50 researchers and engineers, including key leaders in coding, world models, and Grok voice, have left SpaceXAI, the company formed by Elon Musk’s merger of SpaceX and xAI.
– Rivals Meta and Thinking Machine Labs have hired many former staff, with at least 11 employees going to Meta and at least seven to Thinking Machine Labs.
– The exodus of the pre-training team, following the departure of lead Juntang Zhuang, has raised concerns about SpaceXAI’s commitment to developing leading AI models.
– Employees have cited Musk’s culture of extreme work and unrealistic deadlines for training models, which led to cutting corners on Grok, as reasons for leaving.
– Some departures may be driven by financial incentives, as SpaceX regularly offers tenders for employees to sell shares and the company has high IPO expectations.

A wave of high-profile departures is shaking up SpaceXAI, Elon Musk’s newly rebranded artificial intelligence venture, with more than 50 researchers and engineers leaving the company since February, according to a report from The Information. The exodus spans critical teams, including those focused on coding, world models, and the Grok voice assistant.

Competitors are moving quickly to absorb the talent drain. Meta has hired at least 11 former xAI employees since February, while Mira Murati’s Thinking Machine Labs has brought on at least seven others. TechCrunch previously reported on 11 departures announced immediately after the merger, including two co-founders. The company’s core pre-training team has reportedly shrunk to just a handful of people.

The shakeup follows SpaceX’s acquisition of xAI in February, a deal that merged two Musk-owned entities. Musk renamed the combined firm SpaceXAI earlier this month. New leadership has since been installed, but the turnover has raised serious questions internally about the company’s direction.

The loss of Juntang Zhuang, the former head of the pre-training team, has been especially concerning for current employees and those close to the company. Pre-training is the foundational step in building new AI models, and the thinning of that team has led many to wonder if SpaceXAI remains committed to developing industry-leading models.

Insiders also point to Musk’s notorious work culture as a driving factor. Employees across his companies, including Tesla, have long complained about extreme expectations. One source told The Information that Musk imposed unrealistic deadlines for training models, which forced the team to cut corners on Grok.

Some departures may also be motivated by financial incentives. SpaceX regularly offers tenders that allow employees to sell vested shares privately. With the company’s blockbuster IPO expectations looming, many staff may feel confident their equity is nearing liquidity. Once that financial upside is in sight, the willingness to endure undue pressure or work on models that may not be at the cutting edge diminishes sharply.

TechCrunch has reached out to SpaceX for comment.

(Source: TechCrunch)

Topics

employee attrition 95% talent poaching 92% merger impact 88% leadership changes 85% pre-training team 83% work culture 80% model development 78% financial incentives 76% grok voice 72% competitive landscape 70%