MediumTechnologySeptember 18, 2025

Musk and xAI: Summer Work, Reorgs, and Growth

Key Vocabulary

annotator

/ˈænəteɪtər/ a person who labels or explains data for machine training
Example: Data annotators tag images for model training.

supercomputer

/ˈsuːpərkəmˌpjuːtər/ a very powerful computer used for heavy calculations
Example: Colossus is a supercomputer that trains AI models.

reorganized

/ˌriːˈɔːrɡənaɪzd/ changed the structure or order of a company
Example: The team was reorganized last month.

infrastructure

/ˌɪnfrəˈstrʌktʃər/ the basic systems and structures that a company needs to operate
Example: They built new infrastructure for data centers.

📖 Article

Elon Musk has spent part of this year at xAI, focusing on product work and data-center projects. While he briefly worked in Washington, he returned to company sites and has been directly involved in the Memphis supercomputer effort known as Colossus.

In September xAI reorganized, and at least 500 data annotators were cut as part of the change. The company said it will expand specialist AI tutor teams and recruit engineers for a new Seattle hub with salaries up to $440,000. Job postings listed salaries as high as $440,000 for some engineering roles. Although the firm has faced rapid staff turnover, it has also completed major compute builds to power its Grok chatbot.

xAI also merged with the social network X earlier this year, folding data and distribution into a single organization. Its former finance chief helped complete a $5 billion debt raise earlier in 2025. Observers will watch how xAI develops in the months ahead.

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❓ Quiz

Q1. Who spent part of this year at xAI?
Q2. How many data annotators were cut?
Q3. Where is the supercomputer effort based?

💬 Discussion

1.

Do you think new tech hubs in different cities help local workers? Why?

2.

Have you ever changed jobs quickly because your company reorganized? What did you feel?

3.

What do you think about using large computers to train AI? Does it worry you?

4.

Would you like to work for a company that grows fast? Why or why not?