[Digital Today reporter Chi-gyu Hwang (황치규)] Elon Musk has carried out another round of layoffs at xAI. Citing weak performance of its coding products, Musk has dismissed several more co-founders and is reviewing the company overall by bringing in staff from SpaceX and Tesla, the Financial Times (FT) reported on March 13 local time.

FT reported this, citing several sources familiar with the matter. The report said SpaceX and Tesla managers were seconded to xAI, reviewed employees' work and fired some of them. One of the areas the secondees focused on was the quality of data used to train the model.

Data quality was cited as a key reason xAI's coding products have fallen behind Anthropic's Claude Code and OpenAI's Codex. The review led to two more co-founders leaving, and Jihang Dai (지항 다이), one of the most senior technical executives, also resigned this week, FT reported.

Dai previously publicly acknowledged that xAI was behind in coding.

With the co-founders' departures, only Manuel Kroiss and Ross Nordeen remain of the 11 people who co-founded xAI with Musk in March 2023, FT reported. Last month, Musk was reported to have criticised the coding team at a town hall meeting for underperforming compared with competitors.

To fill vacancies, xAI is contacting candidates it previously rejected and offering them better terms. Musk also said, "Many talented people were rejected by xAI over the past few years. I apologise," and added, "I will review the company's interview history and contact promising candidates again." xAI this week also recruited Andrew Milich and Jason Ginsberg from the AI coding app Cursor and assigned them to improve its 'Grok Code Fast' product.