SpaceX's (SPCX) AI group reportedly cuts around 60 Grok video generation staff, The Information reports citing sources; the co. has prioritised AI coding tools and Grok bot

SpaceX's (SPCX) AI group reportedly cuts around 60 Grok video generation staff, The Information reports citing sources; the co. has prioritised AI coding tools and Grok bot.

Headcount reductions at a private group of this kind carry no direct equity transmission, so the read is strategic rather than a repricing event. The pattern fits a broader rotation across AI developers over recent periods, where generative media teams, expensive to staff and slow to monetise, have been scaled back in favour of coding assistants and core chatbot products, which have historically been the segments where enterprise revenue and usage metrics concentrate. The structure here matters more than the numbers: this company's AI operations sit within a web of related entities under common control, and resources, staff and compute have moved between them on previous occasions, so a cut at one entity has often preceded absorption or reallocation at a sibling rather than a genuine exit from the capability. The report rests on anonymous sourcing via a single outlet, and the company has a record of disputing or reframing such accounts after publication. Worth watching are follow-on confirmations, any shift of the affected function into a related entity, and whether the prioritisation of coding tools shows up in product or hiring signals rather than further cuts.