xAI lays off hundreds of Grok trainers

Good morning, AI enthusiasts. Elon Musk’s xAI has trimmed its workforce, cutting hundreds of staff who were responsible for training Grok, the company’s flagship AI assistant.

PLUS: How to generate content for free with one website

TODAY IN AI

💼 xAI lays off hundreds of Grok trainers

Elon Musk’s AI startup xAI has laid off hundreds of data annotators, according to Business Insider. These workers were responsible for labeling training data used to refine Grok’s conversational abilities. The move reflects xAI’s effort to streamline costs while keeping pace with AI rivals.

→ Layoffs primarily affect data annotation teams supporting Grok
→ Highlights the high costs of scaling frontier AI training
→ Grok remains central to Musk’s vision of building AI into X (formerly Twitter)
→ Positions xAI as a leaner competitor to OpenAI, Anthropic, and Google DeepMind

Why is important: Data annotation is the hidden backbone of AI. These cuts underscore the financial pressures of training large models and raise questions about how leaner teams will sustain competitive performance in the AI race.

💸 OpenAI to cut Microsoft revenue share to 8% by 2030

OpenAI projects it will share just 8% of revenue with Microsoft and other partners by the end of the decade, down from the current 20%, according to The Information. That shift could translate into $50B+ in additional retained revenue for OpenAI.

→ OpenAI and Microsoft are renegotiating server rental costs
→ Current deal grants OpenAI’s nonprofit parent over $100B (≈20% of its $500B valuation)
→ A new non-binding agreement would allow OpenAI to restructure into a for-profit entity
→ Microsoft remains a key backer, with $13B invested to date

Why is important: Cutting revenue-sharing obligations strengthens OpenAI’s long-term margins and independence. For Microsoft, it means redefining its role as both infrastructure provider and strategic partner, while OpenAI gains more financial firepower to fuel growth.

HOW TO AI

How to generate content for free with one website

This new free AI platform called DeepAI replaces the need for multiple paid tools. You can generate images, create videos, and even compose music in seconds, all from a single interface.

🧰 Who is this for

• Creators who need fast, high-quality visuals

• Students looking to add images or media to projects

• Startups that want polished content without paying for multiple tools

• Anyone experimenting with AI-generated creativity

STEP 1: Access the DeepAI

Head to the DeepAI and you’ll see a clean dashboard with options to generate Images, Videos, or Music. Each option opens its own dedicated workflow.

For this tutorial, let’s explore the Image generation tool.

STEP 2: Generate with DeepAI

Click on Image option from the menu. A prompt field will appear where you can type in a description of the image you want. Next to the prompt field, you’ll see two buttons: Create Image and Inspire Me.

• Create Image generates the image directly from your prompt.

• Inspire gives you a random creative prompt you can use or edit for your own idea.

Once your prompt is ready, click ‘Create Image’ button and your image will be ready in seconds.

STEP 3: Customize Your Image

Once generated, the platform opens a chat-like interface where your image appears. Alongside the result, you can adjust settings like model, Style and Quality.

If you want further changes, hit the Edit button and you’ll be able to enhance, remove background and animate your image.

STEP 4: Export Your Work

When you’re happy with the result, click the Download button below the image. The file will save instantly with no watermarks or restrictions.

And the best part? You can repeat the same process for videos or music, all inside the same platform.

ESSENTIAL BITES

• OpenAI and the Mets are bringing ChatGPT photo booths, AI stadium guides, and custom pins to Citi Field.

• Penske Media, parent of Rolling Stone, is suing Google over AI Overviews, alleging misuse of content and traffic loss.

• Apple’s senior AI executive Robby Walker, who worked on Siri and AI search, has reportedly left the company.

• Google’s Gemini has surpassed ChatGPT as the top iOS app in the U.S., fueled by its viral Nano Banana model that turns photos into 3D figurines.

⚙️ Hot AI Tools:

• 🎨 Ideogram Styles: Consistent aesthetics & typography

• 🎥 Veo 3; SOTA video + synced audio

• 🤖 K2 Think: UAE’s compact reasoning model

• 🪄 Magical: Fully automate processes with zero human input.

That's it! See you tomorrow

- Dr. Alvaro Cintas