xAI Overhauls Data Annotation Team Amid Leadership Shakeup and Employee Scrutiny

A leadership overhaul is underway within xAI’s data annotation team, sparking concern among employees. At least nine senior staff members have reportedly been removed from the team, with their Slack accounts deactivated over the weekend, according to screenshots shared with Business Insider. These individuals were part of the human data management team responsible for overseeing AI tutors who train Grok, xAI’s chatbot. The team, which previously included around a dozen managers, has seen a significant reduction in leadership, with several former managers having posted on Slack as recently as September 5. One of the deactivated accounts belonged to a technical staff member who managed the team’s supervisors and had prior experience with Tesla’s Autopilot data annotation program. xAI has not commented on the changes. However, multiple employees reported that the company has begun holding one-on-one meetings with some staff, during which workers are being asked to explain their contributions and demonstrate their value. One employee described the process as creating a “sense of panic” across the team. Unlike many AI firms that rely on third-party contractors, xAI hires a large number of its U.S.-based AI tutors directly, which offers greater control over data and privacy but comes at a higher cost. The company briefly partnered with Scale AI for data annotation but ended that arrangement earlier this year. It is now working with Mercor, a data services and recruiting firm, which confirmed the partnership but declined to provide further details. The data annotation team includes over 1,500 contract and full-time workers, many of whom serve as AI tutors. These tutors are responsible for labeling, categorizing, and contextualizing raw data to help Grok better understand human language and real-world knowledge. While they collaborate with engineers, the tutors operate on a separate Slack workspace—TeachX—and use distinct email domains. Within TeachX, teams are organized by specialty, such as science, coding, and translation. Earlier this year, xAI announced plans to hire thousands of AI tutors. Since February, the company has added approximately 700 new workers to the data annotation team, according to internal Slack data. The company currently lists nine open roles in the team, including six AI tutor positions with hourly pay ranging from $35 to $80. The recent leadership changes and employee meetings come amid heightened scrutiny of xAI’s internal operations and its push to scale Grok’s capabilities.