SpaceX is about to go public, and xAI is urgently restructuring its engineering team to enhance competitiveness

According to Business Insider, SpaceX executive Michael Nicolls pointed out in a memo sent to xAI employees that the company's training performance is "embarrassingly low" and clearly stated that xAI is "significantly behind" its competitors. Previous reports indicated that xAI is experiencing staff turnover and team adjustments.

The memo announced an immediate reorganization of the engineering team, appointing several new leaders responsible for pre-training, post-training, infrastructure, and other modules. This move is part of a comprehensive reconstruction pushed by Elon Musk after SpaceX acquired xAI in February 2026, aimed at quickly catching up with competitors like OpenAI, Anthropic, and Google.