SpaceXAI cuts about 60 Grok Imagine employees, resources shift to AI programming tools and Grok Bot

SpaceXAI has cut about 60 members of the Grok Imagine team, retaining only a few to maintain basic operations, with unclear prospects for future development. Since the merger with xAI in February 2026, the company's strategic focus has shifted to AI programming tools and Grok Bot, prioritizing them over other business lines, having previously acquired Cursor.