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Musk's Newly Renamed SpaceXAI Has Lost Over 50 Researchers Since February

Published May 16, 2026
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Summary:
  • More than 50 researchers and engineers have left SpaceXAI since the SpaceX-xAI merger in February, per The Information.
  • At least 11 went to Meta, and another 7 joined Mira Murati's Thinking Machines Lab.
  • The pre-training team, central to building new AI models, has shrunk to a handful of people.

Building the next frontier of AI takes brainpower, and right now Elon Musk's AI company is leaking it. SpaceXAI, the new name for xAI after SpaceX acquired it in February, has watched more than 50 researchers walk out the door since the deal closed.

The exits are hitting the team that builds models from scratch.

A Hot AI Lab With A Cooling Roster

The Information reported the exits, which run across the company's coding group, world models team, and the Grok voice product. The pre-training crew, the engineers who build new AI models from scratch, has been hit especially hard after lead Juntang Zhuang walked.

Meta has picked up at least 11 of the departing employees, while another 7 went to Mira Murati's new Thinking Machines Lab.

TechCrunch had already reported 11 exits right after the merger in February, including two xAI co-founders. That's a lot of brainpower running out the door right when the company is trying to ship its next set of models.

The AI talent war is reshaping which companies will lead the next decade, and we break the moves down each morning in Market Briefs. Sign up and you also get a free investing masterclass on the house.

Why People Are Leaving

There are two big drivers. One is money - SpaceX runs regular tenders that let employees cash out vested shares, and a blockbuster IPO is widely expected.

For many staff, the financial light at the end of the tunnel is bright enough to make the long hours less worth it.

The other is the hours themselves. A source told The Information that Musk's training timelines were tight enough that corners got cut on Grok, the kind of culture employees have flagged at Tesla and his other companies before.

The takeaway: When equity is close to cashable and pressure is at a peak, top researchers can pick their next stop.

What To Watch

Pre-training isn't a side project - it's the team that builds every new model. If that team keeps shrinking, so does the case that SpaceXAI is still chasing the frontier.

Meta and Thinking Machines are betting they can build it instead.

If you want to know which AI names Wall Street is actually backing, join 350,000+ readers at Market Briefs - delivered every weekday morning with a 45-minute investing course thrown in.

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