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Home » Elon Musk on xAI’s Massive Growth, SpaceX Merger & Lunar Base (Transcript)

Elon Musk on xAI’s Massive Growth, SpaceX Merger & Lunar Base (Transcript)

Editor’s Notes: In this presentation@ xAI All Hands, Elon Musk and the xAI team detail the company’s rapid evolution and its ambitious future at the intersection of artificial intelligence and space exploration. The video highlights major milestones, including the scaling of the “Grok” model, the development of massive GPU training clusters in Memphis, and the introduction of “Macrohard” for digital company emulation. Most notably, Musk discusses the strategic merger of xAI and SpaceX, outlining a vision for orbital data centers and lunar-based “mass drivers” to propel humanity toward becoming a multi-planetary, AI-augmented civilization. (February 12, 2026)

TRANSCRIPT:

Welcome to xAI All Hands

ELON MUSK: Welcome to the xAI All Hands, we’ve got a very exciting presentation for you. We’re going to start off by recapping the incredible progress that the xAI team has made in just two and a half years. It’s really remarkable in pursuit of our goal of understanding the universe.

Accomplishments Since Inception

So just going over our accomplishments since inception. It’s important to bear in mind that xAI is only two and a half years old, basically a toddler. And we’ve nonetheless achieved an incredible amount in a very short period of time. So our competitors are 5, 10, in some cases 20 years old. They have much larger teams. They started off with far more resources. And yet nonetheless, we have achieved number one in many arenas in just a few years.

So we’ve achieved number one in voice, in image and video generation. I think we now at this point are actually generating more images and video based on the last times I saw, than all of our competitors combined. We are winning in terms of forecasting, which is one of the key metrics of intelligence. So the Grok 420 forecasting model beat all the other AIs in forecasting. And we’ve talked to many leaderboards.

We’ve got now a great app with Imagine, with the core Grok. We’ve made radical improvements to the X app. And we’ve launched Grokipedia, which is on its way to far exceeding Wikipedia, and will ultimately be orders of magnitude more comprehensive and more accurate, and have more information as well as video and image data that simply isn’t there on Wikipedia. So it’s intended ultimately to be Encyclopedia Galactica, a distillation of all knowledge.

And we’re the first to achieve 100,000 H100 GPU training cluster. And we’re now about to achieve the first one million H100 GPU equivalents in training. So really an incredible amount of work in a very short period of time.

Velocity and Acceleration

And it’s important to consider for competitiveness of any technology company, what matters is not the position at any point in time, but what is your velocity and acceleration. And if you’re moving faster than anyone else in any given technology arena, you will be the leader. And xAI is moving faster than any other company. No one’s even close.

Company Reorganization

So let’s go to our team. As we grow as a company, a natural thing that happens is you reorganize the company as it scales up. So when you first have a startup, you might have just a few dozen people, and they all just chat amongst themselves. As you grow to several hundred people, you have to then add more structure, just like an organism that grows from a single, like we all just grew from a single cell, and then to a blob of cells, and then you get organ differentiation, limbs. You grow a tail. Hopefully the tail disappears. And then you become a baby. You go through these stages.

And so we’re organizing, because we’ve reached a certain scale, we’re organizing the company to be more effective at this scale. Now naturally, when this happens, there are some people who are better suited for the early stages of a company and less suited for the later stages. And so for the people that have departed, I’d just like to say thank you for your contribution. Thank you for getting us this far, and we wish you very well in your future endeavors.

New Company Structure

So now going on to the new structure of the company, the company is organized in four main application areas. There’s Grok, Main, and Voice, which is really the main Grok model. That’s why it’s called Grok Main. Then there’s a coding-specific model. There’s an image and video model, which is Imagine. And then MacroHard, which is intended to do full digital emulation of entire companies. And then we’ve got the infrastructure layers.

So I’d like to invite members of the team to come up and talk about each of their areas.

UNIDENTIFIED SPEAKER: Hey, thanks Elon. So Grok Main and Voice are going to be merged into one team on Voice. One anecdote is September 2024, OpenAI had this product.

You could talk to Advanced Voice Mode, and we had nothing, no model, of course, no product. We started much after that. And in a span of a few months, six months, we developed the model in-house from scratch, without a bunch of people who knew audio, and had a product that was surpassing OpenAI in six months.

Fast forward six more months, and now we have Grok in more than 2 billion Teslas. We have a Grok Voice Agent API. You can do all kinds of amazing things. In a span of one year, we went from nothing to being leaders. That kind of stuff is only possible in a place like xAI. We have small teams, committed mission-focused, lots of compute. And we really want to keep pushing.

Same story on the chat models. We’ve always been at the forefront of reasoning, starting from Grok 1.5, Grok 2, Grok 3. And we want to really move to a world where it’s no longer about just question answering. We want to build an everything app. So you should be able to come to it and really get done whatever you want.