Artificial intelligence startup xAI has laid off approximately 500 employees, mainly from its data annotation team responsible for training the Grok chatbot. The cuts come amid internal restructuring and challenges in AI development. The company has not disclosed detailed reasons for the layoffs but emphasizes ongoing efforts to streamline operations. The affected team played a crucial role in preparing data for the chatbot's training. The news highlights the turbulent landscape of AI companies adapting to rapid industry changes.