SpaceX's AI division lays off about 60 people from the Grok Imagine team.

Beating AI News Flash: According to The Information, Musk's SpaceX AI division has laid off approximately 60 employees from the Grok Imagine video generation team. The team had already undergone layoffs in previous months. Grok Imagine is the image and short video generation feature built into the Grok chatbot.

xAI was merged into SpaceX in February 2026, after which the AI business was restructured into four directions: Grok Main and Voice, coding tools, Imagine, and Macrohard. Since the merger, multiple co-founders and senior researchers have departed. In September 2025, xAI laid off approximately 500 data annotators.