SpaceX IPO Imminent, xAI Emergency Reorg Engineering Team to Boost Competitiveness

BlockBeats News, April 9th, according to Business Insider, SpaceX executive Michael Nicolls pointed out in a memo to xAI employees that the company's compute training performance is "embarrassingly low" and explicitly stated that xAI has fallen "significantly behind" its competitors. Earlier reports indicated that xAI is experiencing personnel attrition and team restructuring.

The memo announced an immediate restructuring of the engineering team, appointing multiple new leads for pre-training, post-training, infrastructure, and other modules. This move is part of a comprehensive overhaul driven by Elon Musk after SpaceX's acquisition of xAI in February 2026, aiming to rapidly catch up to competitors such as OpenAI, Anthropic, and Google.