Tech investor and LinkedIn co-founder Reid Hoffman criticized the AI strategy of Space Exploration Technologies Corp. and the performance of xAI. In the Pioneers of AI podcast on Tuesday, in conversation with Rana el Kaliouby, Hoffman said that xAI, as Elon Musk himself had described it, was a “complete train wreck” in its efforts to build foundational models and related technologies, highlighting that all of xAI’s founders have departed and the company is on its “third restart.” "SpaceX isn’t an AI company," said Hoffman, following SpaceX’s public listing on June 12, where AI was a significant part of its IPO narrative, and its acquisition of Cursor, an AI coding tool. Hoffman termed it as using the market cap to “buy AI companies and try to buy your way into relevance.” "You’re a premium-priced CoreWeave," Hoffman said. SpaceX has been facing financial challenges, losing $1 trillion in a week, yet it managed to raise $20 billion in debt. Hoffman also expressed concern over the U.S. government’s decision to compel Anthropic to withdraw its Fable and Mythos models from the market, criticizing the lack of a clear, principled rationale. Despite being an investor in both Anthropic and OpenAI, Hoffman argued the AI market is large enough for both to succeed.