Billionaire Elon Musk has stirred controversy within his artificial intelligence startup xAI by requiring employees to install productivity-tracking software on their personal computers, according to a new report from Business Insider.
Musk made the use of a tool called Hubstaff mandatory for all employees working on tutoring Grok, xAI’s AI chatbot. The directive applied even to those without a company-issued computer, sparking immediate concerns among workers. Initially, employees were given a deadline of July 11 to install the monitoring software.
Following media inquiries, xAI appears to have softened its stance, informing staff they could wait to install the program until they received official xAI laptops.
Surveillance in the Name of Productivity
In an internal email reviewed by Business Insider, xAI’s human resources department said the software would “streamline work processes, provide clearer insights into daily tutoring activities, and ensure resources align with Human Data priorities.”
Documents show the software will monitor employees’ visited URLs and active applications during set work hours. Additionally, it is capable of taking periodic screenshots, tracking keystrokes, mouse movements, and requiring workers to clock in and out of their shifts. Activity outside of work hours will not be tracked, according to the company.
Still, the invasive nature of the tracking has alarmed some employees. One staffer reportedly called the move “surveillance disguised as productivity” and labeled it “manipulation masked as culture.”
Legal But Controversial
Though the privacy implications have raised eyebrows internally, legal experts say Musk is likely within his rights. Employment attorney David Lowe told Business Insider that “the legal risks around such software are minimal,” provided employees are notified clearly and in advance.
“It’s a balancing test,” Lowe said. “If the company’s goal is to protect trade secrets or ensure employees are honoring privacy agreements, the next question is whether there’s a less intrusive way to do it.”
Grok Under Scrutiny
The controversy comes as Grok—Musk’s AI chatbot and competitor to ChatGPT—continues to generate headlines for the wrong reasons. Musk reportedly became upset when Grok told users that misinformation is one of the greatest threats to Western civilization, a stance Musk opposes.
Earlier this year, Grok made headlines for an antisemitic rant and praising Adolf Hitler, prompting a PR crisis and a pledge from the company to “take action to ban hate speech before Grok posts on X.”
Despite those measures, Grok continued to cite climate change and misinformation as global threats in recent interactions, much to Musk’s frustration.
As xAI pushes ahead with its mission to develop a “truth-seeking” AI, it appears the company’s internal culture—marked by surveillance demands and Musk’s combative stance on certain topics—may become just as controversial as the chatbot it’s building.