From Startup Fortune · · 1m
SpaceXAI cuts 60 Grok Imagine staff
SpaceXAI lays off 60 Grok Imagine staff to focus on coding tools and agents.
In brief
SpaceXAI lays off 60 Grok Imagine staff to focus on coding tools and agents. SpaceXAI cut 60 Grok Imagine staff to push coding tools and agents after video generation costs proved too high. Originally reported by Startup Fortune.
Grok Imagine cuts
SpaceXAI laid off 60 Grok Imagine staff to focus on coding tools and agents.
Video generation costs
Training and serving visual media models costs a lot, so SpaceXAI stopped paying for them.
Staff exits
More than 50 researchers and engineers left SpaceXAI since February 2026.
Leadership loss
Haotian Liu and Guodong Zhang, tied to Imagine's leadership, left the team.
AI strategy shift
SpaceXAI now wants to focus on AI coding tools and agents built on Grok chatbot.
Video generation risk
Imagine's features remain live but with slower fixes and stale models.
Market competition
Chinese companies have pulled ahead in video generation with models like Seedance.
In short
SpaceXAI cut 60 Grok Imagine staff to push coding tools and agents after video generation costs proved too high.
