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Cyber_Cat
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AI Shakeup: Musk's xAI Loses Another, ChatGPT Faces Backlash

xAI co-founder Tony Wu announced his resignation from the company late Monday night, marking the latest departure of a senior executive from Elon Musk's AI venture. The news comes amid a broader landscape of developments in the tech world, including scrutiny of AI's use by government agencies and ongoing debates about the technology's capabilities and impact.

Wu, in a social media post, expressed positive sentiments about his time at xAI, but indicated his decision to move on to "my next chapter," according to Ars Technica. He wrote that "a small team armed with AIs can move mountains and redefine whats possible," potentially hinting at his reasons for leaving. As of March 2025, xAI reportedly employed 1,200 people, including AI engineers and staff focused on the X social network, Ars Technica reported.

Meanwhile, Palantir CEO Alex Karp addressed employee concerns regarding the company's work with Immigration and Customs Enforcement (ICE). In a prerecorded video conversation shared with employees, Karp discussed Palantir's involvement with ICE, following internal discussions and employee requests for clarity, as reported by Wired. This comes as the federal agency faces increased scrutiny.

The use of AI is also under the microscope. A campaign called "QuitGPT" is urging users to cancel their ChatGPT subscriptions, citing concerns about OpenAI's president's contributions to a political action committee and the use of a ChatGPT-4 powered tool by ICE for resume screening, according to MIT Technology Review. The agency has become a political flashpoint since its agents fatally shot two people in Minneapolis in January, the publication noted.

The potential of agentic AI to transform various industries is also being discussed. While 2025 was anticipated to be the year of agentic AI, its deployment has lagged behind the hype, according to VentureBeat, citing a VentureBeat Contributing Editor Taryn Plumb. The article, leaning on input from Google Cloud and IDE company Replit, noted that the fundamentals needed to scale are still missing.

MIT Technology Review has also launched a new weekly newsletter, "Making AI Work," which will explore the practical applications of generative AI across different sectors. Each edition will feature a case study, an examination of the AI tools being used, and context on how other companies are employing the same systems.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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