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AI Hype, Musk's xAI Troubles, and AI Therapy's Rise

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. Meanwhile, Palantir CEO Alex Karp addressed employee concerns regarding the company's work with Immigration and Customs Enforcement (ICE) in a prerecorded video, and the hype surrounding agentic AI and new AI applications continues to evolve.

Wu's departure, revealed in a social media post, cited his desire to pursue a "next chapter," according to Ars Technica. He expressed positive sentiments about his time at xAI, but the mention of what a "small team" can achieve may hint at the reasons for his exit. As of March 2025, xAI reportedly employed 1,200 people, including AI engineers and staff focused on the X social network, Ars Technica reported.

Palantir's CEO, Alex Karp, responded to employee inquiries about the company's involvement with ICE. In an email viewed by Wired, Courtney Bowman, Palantir's global director of privacy and civil liberties engineering, shared a prerecorded video conversation with Karp. The discussion aimed to address employee concerns and provide insight into the company's stance on its work with ICE.

The evolution of AI continues to be a major topic. VentureBeat reported that agentic AI, designed to take goal-driven action, was expected to transform various industries in 2025, but the technology's deployment has lagged behind the hype. According to VentureBeat Contributing Editor Taryn Plumb, the fundamentals required to scale agentic AI were missing.

MIT Technology Review's "The Download" newsletter highlighted the rise of AI applications, including a social network for bots called Moltbook. Launched on January 28, Moltbook quickly gained popularity as a platform where AI agents could interact. However, MIT Technology Review questioned whether Moltbook represents the future of AI or something else entirely. The newsletter also announced the launch of "Making AI Work," a new series exploring the practical applications of generative AI across different sectors.

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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