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xAI outlines major restructuring and ambitious space based AI plans in public all hands

xAI has made public a full 45 minute recording of its internal all hands meeting on X, offering a rare look into the company’s strategy and future plans. The Tuesday night session, which had earlier been covered by a media publication, sheds light on Elon Musk’s roadmap for xAI, its changing organizational structure and its deep integration with the X platform.

A major focus of the xAI meeting was employee departures. Musk described the exits as layoffs tied to a broader restructuring as xAI continues to scale. While such changes are common in fast growing technology companies, the number of departures has drawn attention, especially as several founding team members were among those leaving. “As a company grows, especially as quickly as xAI, the structure must evolve,” Musk said on X. “This unfortunately required parting ways with some people. We wish them well in future endeavours.” Under the new structure, xAI now operates through 4 core teams focused on the Grok chatbot including voice, the app’s coding system, the Imagine video generator, and the Macrohard project.

The Macrohard initiative represents one of xAI’s most ambitious efforts. It aims to simulate computer use and model entire corporations through AI systems. “[Macrohard] is able to do anything on a computer that a computer is able to do,” said Toby Pohlen, who will lead the project. “There should be rocket engines fully designed by AI.” During the meeting, xAI and X executives also shared business updates. Nikita Bier, head of product at X, said the platform has “just crossed” $1 billion in annual recurring revenue from subscriptions, driven by a holiday marketing push. xAI added that its Imagine tool is generating 50 million videos per day and more than 6 billion images in the past 30 days.

At the same time, questions remain about content quality and moderation on X. The rise of AI generated deepfake pornography has boosted engagement, with an estimated 1.8 million sexualized images created in just 9 days, likely contributing to overall generation figures. The xAI meeting concluded with Musk outlining long term plans for space based data centres, including a moon based factory for AI satellites and a lunar mass driver to launch them. He suggested such infrastructure could enable AI clusters capable of capturing large portions of the sun’s energy or expanding beyond our galaxy. “It’s difficult to imagine what an intelligence of that scale would think about,” Musk said, “but it’s going to be incredibly exciting to see it happen.”

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