Elon Musk has announced a major organisational overhaul of xAI, the artificial-intelligence company he co-founded, following its recent merger into aerospace giant SpaceX, as the combined business targets a blockbuster initial public offering later this year.

Musk described the restructuring during an all-hands meeting with xAI staff, saying the company needed a new operating structure “because we’ve reached a certain scale” and must become “more effective at this scale.” The reorganisation comes on the heels of the SpaceX acquisition of xAI, which creates a combined entity valued at roughly $1.25 trillion and positions the merged company as a powerhouse spanning AI and space technologies.

Under the new framework, xAI has been organised into four core technical teams with dedicated leadership: the Grok chatbot and voice model group, a team focused on coding models and machine-learning infrastructure, a multimedia team dubbed Imagine, and a unit called Macrohard aiming to develop autonomous AI systems. Leadership appointments were announced for each division as part of an effort to sharpen focus and execution.

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The reorganisation coincides with the departure of several co-founders from the original xAI team. Notably, Yuhai (Tony) Wu and Jimmy Ba, among others, have stepped down in recent days, reducing the number of original founding members and underscoring the cultural and strategic shifts underway as the company scales.

In outlining the restructuring, Musk emphasised the need for “velocity and acceleration” in development, framing these changes as vital to competing with established AI leaders such as OpenAI and Google’s AI division. Some staff roles were eliminated or reassigned, reflecting a shift from early-stage experimentation to rapid product development.

The merger with SpaceX and the subsequent reorganisation mark a significant pivot in Musk’s technology empire, blending advanced AI research with aerospace infrastructure and ambitions for orbital data centres. Observers say the moves are intended to streamline innovation, support future growth, and present a more unified front ahead of the planned public listing.

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