According to the report, company leadership now prioritizes AI coding tools and Grok Bot, the agent that carries out tasks on its own. Video generation needs far more computing power per request than text [1]. Independent benchmarks cited by The Information placed Grok Imagine behind the leading rival models [1], and in blind-vote video rankings in July, Chinese companies held the top six spots, led by ByteDance’s Seedance 2.0 [2]. Musk wrote on X in March that the next version of Grok Imagine would be “epic” and that the company was doubling down on the category [1].
SpaceX absorbed xAI in an all-stock deal in February, and the AI business now runs inside SpaceX as SpaceX Super Intelligence (SpaceXSI) [1]. Its work was split into four areas: the main Grok chatbot and voice, coding, Imagine and a project called Macrohard. The video team had already been cut in earlier months [3]. In May, The Information reported that more than 50 researchers and engineers had left since the merger [1]. The unit trimmed usage quotas for Grok Bot this month after Musk said serving costs had outrun revenue (our coverage), and on Nov. 10 a security firm found 35,000 apps built with Grok Build exposed to anyone (our coverage).