The most immediate revelation concerns a set of departing employees, which Musk described as layoffs resulting from a change in the company’s organizational structure. While the reorganizations are common, the extent of the departures has caused considerable confusion, especially since it means the loss of a large part of the founding team.

“As a company grows, especially with the agility of xAI, the structure must evolve,” Musk say that in X. “This unfortunately necessitated the separation of some people. We wish them well in their future endeavors.”

The new organizational system divides xAI into four main teams: one focused on the Grok chatbot (including voice), another for the app’s coding system, another for the Imagine video generator, and finally a team focused on the Macrohard project, which goes from simple computer use simulation to modeling entire corporations.

“(Macrohard) can do anything on a computer that a computer can do,” Toby Pohlen, who will lead the project under the new organizational structure, told his colleagues. “There should be rocket engines designed entirely by AI.”

All hands also showed claims about new usage and revenue numbers for xAI and X. Nikita Bier, X’s head of product, said X just “crossed” $1 billion in annual recurring revenue from subscriptions, which he attributed to a sales push during the holidays.

In addition, executives say that xAI’s Imagine tool produces 50 million videos a day, and more than 6 billion images in the last 30 days, according to their internal metrics.

But it’s hard to separate the numbers from the the flood of deeply fake pornography which exceeded X during that same period. The X platform saw the engagement skyrocket as AI-generated clear images become more widespread, and with approximately 1.8 million sex images created in just nine days, the figures to produce the image likely include a large amount of this controversial content.

The most compelling part of the presentation came at the end, when Musk again emphasized the importance of space-based data centers. despite the technical challenges involved. Musk went even further, envisioning a moon-based factory for AI satellites, including a lunar mass driver — an electromagnetic catapult — to launch them. With such an infrastructure, Musk said, one could launch an AI cluster capable of capturing a significant portion of the sun’s total energy output or even expanding to other galaxies.

“It’s hard to imagine what an intelligence of that scale would think,” Musk said, “but it’s exciting to see it happen.”