SpaceXAI reportedly cuts about 60 Grok Imagine R&D staff

On November 13, 2026, IT之家 reported, citing The Information and people with knowledge of the matter, that SpaceXAI had laid off most of the development staff behind Grok Imagine, its AI tool for generating video and images. The reduction affected roughly 60 members of the Grok Imagine team. Only a small number of employees remain to keep the product's basic operations running, and the tool is still accessible and usable, though its outlook has become uncertain without a dedicated research and development team behind it.

The report frames the staff reduction as one step in an ongoing restructuring at the company. In February 2026, SpaceX completed its acquisition of xAI, the artificial intelligence company owned by Elon Musk, in a stock deal valued at $250 billion. Since the merger, SpaceX has shifted its strategic focus toward AI coding tools and the Grok Bot agent, giving those efforts priority over other product lines. In August 2026, SpaceX acquired Cursor, an AI coding startup, for $60 billion, a move the report describes as a concrete step in that strategic pivot. As of now, the situation has settled at the stage where Grok Imagine's development team has been sharply reduced, with only a handful of staff left to maintain basic operations, while the company's resources and priorities are directed toward its AI coding and agent products.