Elon Musk backs xAI amid $6.4B combined loss, 50+ departures
Elon Musk is standing by his AI company, xAI, after xAI and X posted a massive $6.4 billion operating loss on just $3.2 billion in revenue since merging with X last year.
The company has been hit hard, too: more than 50 researchers and engineers have left since xAI was absorbed by SpaceX in February, and teams working on Grok (their chatbot for X) are feeling the impact.
Grok faces EU scrutiny for deepfakes
Musk compared xAI's struggles to SpaceX's rocky beginnings, asking everyone to give it time: "Let's see where things stand 3 years from now."
Meanwhile, xAI's Colossus facilities in Memphis are under fire for installing gas turbines that critics say pollute a mostly Black neighborhood.
Grok has also faced European regulators after producing harmful deepfakes.
Even so, xAI recently landed a Pentagon contract worth up to $200 million, a small win amid all the challenges.