xAI’s Big Shift: Lays Off 500 Data Annotators to Boost Specialist AI Teams
Elon Musk’s AI startup xAI has laid off around 500 workers from its data annotation team, the largest division responsible for labeling and contextualizing data to train its Grok chatbot. The affected employees, primarily generalist AI tutors, were notified via email on Friday night and immediately lost access to company systems, although they will be paid through the end of their contracts or until November 30. This layoff represents about one-third of xAI’s annotation workforce.
The move reflects a strategic pivot to expand and prioritize specialist AI tutors with expertise in areas like STEM, finance, and medicine. xAI plans to increase its specialist AI tutor team by ten times, focusing on enhancing Grok’s capabilities through more targeted and expert input. This restructuring follows xAI’s recent funding boosts and comes amidst leadership changes including the departure of its finance chief. Musk positioned xAI as a challenger to Big Tech’s AI efforts, particularly criticizing them for censorship and safety issues.
Perplexity Surges: Raises $200M at $20 Billion Valuation in AI Search Showdown
Perplexity, the AI-powered search startup challenging Google, has secured $200 million in new funding at a $20 billion valuation, marking a rapid surge from its $18 billion valuation just two months earlier. Since its founding three years ago, Perplexity has raised a total of $1.5 billion, propelled by heavy investor interest including backing from Nvidia, Jeff Bezos, and Accel.
The startup is gaining momentum by providing conversational, AI-driven answers to queries rather than traditional link lists. Its annual recurring revenue is approaching $200 million, supported by its AI browser Comet. The funding follows Perplexity’s bold but unsuccessful $34.5 billion bid to acquire Google’s Chrome browser, a move aimed at expanding its competitive edge in the evolving search landscape amid ongoing antitrust scrutiny of Google.
YouTube’s Multi-Language Audio Dubbing Goes Global for All Creators
YouTube has officially launched its multi-language audio dubbing feature to millions of creators worldwide after a two-year pilot with select creators like MrBeast, Mark Rober, and Jamie Oliver. This feature allows creators to add dubbed audio tracks in different languages to their videos, helping them reach a wider global audience without needing separate uploads. The AI-powered auto-dubbing tool uses Google’s Gemini technology to replicate the creator’s tone and emotions, making the translations sound natural and engaging.
YouTube reports that creators using multi-language audio have seen over 25% of their watch time come from views in non-primary languages, with Jamie Oliver’s channel tripling views after adopting the feature. Additionally, YouTube is testing multi-language thumbnails that localize text for viewers’ preferred languages, further enhancing global accessibility and engagement. This rollout is expected to continue over the coming weeks, empowering creators to connect with diverse audiences on the platform.
Microsoft Diversifies AI Portfolio, Partners with Anthropic to Power Office 365
Microsoft is reducing its exclusive reliance on OpenAI by integrating AI technology from Anthropic into its Office 365 suite, including Word, Excel, Outlook, and PowerPoint. The move follows internal assessments finding that Anthropic’s latest model, Claude Sonnet 4, outperforms OpenAI’s technology in certain productivity tasks such as creating visually appealing PowerPoint presentations and automating Excel functions. This marks a strategic shift as Microsoft expands its AI partnerships beyond OpenAI, while also pursuing self-reliance through its own in-house AI models.
The collaboration with Anthropic comes amid a growing rift between Microsoft and OpenAI, partly due to OpenAI’s plans for infrastructure independence and competitive offerings like a LinkedIn rival. Despite diversifying, Microsoft affirms its ongoing long-term partnership with OpenAI. The new deal is expected to benefit Microsoft’s 430 million Office 365 users, with no immediate changes to subscription pricing