SpaceX Cuts Most of Grok Imagine Team, Shifts Focus to AI Coding

SpaceX has laid off most of the research team behind Grok Imagine, its AI tool for making videos and images. Around 60 team members were cut, with only a few staying on to keep the product running.

The tool still works for now, but without a dedicated team behind it, its future looks unclear. Since xAI and SpaceX finished their merger in February 2026, the company has been going through a big restructuring.

In February, SpaceX bought Musk's AI company xAI in a $250 billion stock deal. After that, it put more focus on AI coding tools and the Grok Bot agent. In August, SpaceX bought the AI coding startup Cursor for $60 billion, a clear sign of this new direction.