Musk's AI Team Cuts About 60 Staff From Grok Video Generation Team

Nov 13: According to The Information, Musk's AI team has laid off about 60 employees from the Grok Imagine video generation team. The team had already seen 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 reorganized into four areas: Grok Main and Voice, coding tools, Imagine, and Macrohard. Since the merger, several co-founders and senior researchers have departed. In September 2025, xAI laid off about 500 data annotators. The company has not disclosed its follow-up plans for the video feature.