Edith Hejberg
Employees were encouraged to hand over detailed records in exchange for cash and early access to X Money,
Elon Musk has built an empire around internet culture, memes, and attention-grabbing stunts. But according to a new report, one joke involving the number 420 has left some xAI employees frustrated instead of amused.
Workers at Musk’s artificial intelligence company say they were promised cash payments for helping train the Grok chatbot, and that the money never arrived.
The story adds to growing tension inside xAI as the company races to compete in the booming AI industry.
xAI allegedly promised workers $420 each
According to Bloomberg, employees at xAI were told they would receive $420 if they submitted their tax returns and related financial documents into Grok.
The goal was to improve the chatbot’s ability to answer tax-related questions ahead of tax season.
The amount itself appeared to be another reference to Musk’s long-running obsession with the meme number 420, which he has used repeatedly throughout his career and public persona.
The company wanted to improve Grok’s tax skills
As more people turn to AI chatbots for financial guidance, xAI reportedly wanted Grok to become better at handling tax questions and IRS-related topics.
Managers believed real-world tax filings could help sharpen the chatbot’s capabilities.
Employees were encouraged to hand over detailed records in exchange for cash and early access to X Money, Musk’s planned payment platform connected to X, formerly Twitter.
Friends and family were also recruited
The initiative reportedly expanded beyond company staff.
Bloomberg says employees were encouraged to involve friends and relatives who used accountants to prepare their taxes.
Those participants were allegedly promised compensation as well.
The broader effort suggests xAI was eager to gather as much real financial data as possible to train its AI systems quickly.
Two months later, workers say the money still hasn’t arrived
Despite the promises, employees told Bloomberg that the payments had not materialized even after weeks of waiting.
Some workers reportedly began asking managers where the money had gone.
The delayed payouts have become a source of irritation inside the company, especially among employees already dealing with uncertainty and internal upheaval.
Employees reportedly got the runaround
Workers who asked about the missing payments were allegedly told that the manager overseeing the program no longer worked at xAI.
That explanation did little to calm frustration.
While the company could still eventually pay employees, the situation has created another awkward controversy surrounding Musk’s management style and business practices.
Morale at xAI was already under pressure
The payment dispute comes during a difficult period for the company.
Reports say morale inside xAI has already been declining following layoffs and the departure of several cofounders.
Employees are reportedly facing intense pressure as Musk pushes aggressively to compete against OpenAI, Google, and other AI rivals.
The missing $420 payments have only added to existing tensions.
Musk’s reputation for bold promises resurfaces
Musk has long been known for making ambitious promises and dramatic public claims.
Supporters often praise his willingness to take risks and move quickly, while critics argue he frequently overpromises and underdelivers.
The reported xAI payment dispute fits into a broader pattern that has followed several of Musk’s companies over the years.
The use of personal data raises questions
The story also highlights growing concerns about how AI companies collect training data.
Tax returns contain highly sensitive financial information, making the request particularly striking.
Although employees reportedly volunteered their documents, the situation raises fresh questions about privacy, workplace pressure, and the boundaries companies may push while training AI systems.
AI companies are increasingly hungry for data
The AI industry’s demand for high-quality data has become enormous.
Companies are searching for ways to improve chatbots using real-world examples that can teach systems how people communicate, solve problems, and manage tasks.
Financial documents are especially valuable because they contain structured information and complex scenarios that can help train AI models more effectively.
Meta is facing its own employee backlash
xAI is not the only tech company facing internal resistance over data collection.
At Meta, employees have reportedly criticized a program that tracks mouse movements, keyboard activity, and screen recordings to help train AI systems.
The backlash reflects growing unease among tech workers about how much personal information companies expect employees to surrender in the AI race.
The race to build smarter AI keeps escalating
Competition in artificial intelligence has intensified dramatically over the past two years.
Tech giants and startups alike are pouring billions into building more capable AI systems, often under intense time pressure.
That environment can create aggressive internal strategies, controversial experiments, and growing frustration among workers caught in the middle.
For some xAI employees, the joke stopped being funny
Musk’s use of 420 references may once have seemed playful to fans and employees alike.
But for workers still waiting on promised payments, the joke now appears to have worn thin.
Whether the money eventually arrives or not, the episode has become another unusual chapter in the increasingly chaotic world of AI development.
