xAI has taken the unusual step of releasing a 45-minute internal all-hands meeting on X, offering a detailed look at a significant reorganization, product roadmap updates, and tighter integration with the social platform. Elon Musk described the changes as a structural evolution driven by rapid growth, rather than a response to short-term setbacks.
Since xAI was formed just 30 months ago, the small and talented team has made remarkable progress.
The future has never looked more exciting! pic.twitter.com/QZ73H2mpBj
— xAI (@xai) February 11, 2026
During the meeting, Musk acknowledged a wave of departures that included early team members. He characterized the exits as layoffs linked to a new operating model, not isolated resignations. The company is moving away from a small, centralized team toward a product-line structure designed to support faster development and higher output across multiple AI tools.
Under the new structure, xAI will be organized around four core product lines. These include the Grok chatbot, which now encompasses voice capabilities, a dedicated coding tools team, a group focused on the Imagine video-generation system, and a new unit called Macrohard.
Macrohard is tasked with building AI agents capable of simulating full computer use. Toby Pohlen, who leads the unit, told employees the long-term goal is for the system to perform any action a computer can, including end-to-end design of complex assets such as rocket engines and large-scale enterprise systems.
Usage Growth and Monetization Ties to X
Executives highlighted strong usage growth across xAI’s products and emphasized their growing role in X’s business model. Internal figures shared during the meeting showed that Imagine is producing about 50 million videos per day and generated more than 6 billion images over the past month.
Those volumes likely include a significant amount of controversial content, including deepfake pornography, which has recently contributed to higher engagement levels on X. The scale underscores both the reach of xAI’s generative systems and the regulatory and reputational risks tied to high-volume AI content distributed through a social platform.
On the monetization side, Nikita Bier, X’s head of product, said the platform has surpassed $1 billion in annual recurring subscription revenue. He attributed the milestone partly to recent marketing campaigns and product changes, reinforcing the strategic importance of xAI’s AI stack to X’s subscription-driven strategy.
While executives did not disclose specific revenue figures tied directly to xAI products, the integration of Grok and Imagine into paid features suggests that AI-driven tools are becoming central to user engagement and future subscription offerings.
Musk closed the meeting by outlining a long-term infrastructure vision that extends beyond traditional data centers. He discussed concepts such as AI-focused satellite constellations, space-based data centers, a moon-based factory for satellite production, and a lunar mass driver for launches. Musk argued that such infrastructure could eventually support AI clusters capable of capturing a meaningful share of the sun’s energy output.
For investors and industry observers, the session highlights xAI’s rapid shift from a founding-stage organization to a product-driven structure, its deep financial and technical interdependence with X, and its ambition to compete at global scale. Near-term execution risks include managing the reorganization, addressing content-related scrutiny on X, and converting rising usage of Grok and Imagine into durable subscription revenue.